Xpeng Inc.
Xpeng Inc (NYSE: XPEV) is a China-based company engaged in design, development, production, and sales of smart electric vehicles (Smart EV). The Company's primary products are environmentally friendly vehicles, namely an SUV (the G3) and a four-door sports sedan (the P7).
Latest Financial Updates:
- During the first quarter of 2023, XPEV recorded total vehicle deliveries of 18,230, indicating a decline of 17.9% compared to the previous quarter's figure of 22,204. The company continued its expansion efforts by adding 425 physical stores, extending its sales network to 145 cities as of March 31, 2023. Additionally, XPEV established a self-operated charging station network consisting of 1,016 stations, including 816 self-operated supercharging stations and 200 destination charging stations.
- Total revenues for the first quarter of 2023 amounted to RMB 4.03 billion (USD 0.59 billion), reflecting a decrease of 45.9% from the same period in 2022 and a 21.5% decline from the previous quarter. Revenues specifically from vehicle sales in Q1FY23 were RMB 3.51 billion (USD 0.51 billion), marking a decrease of 49.8% compared to the same period in 2022 and a 24.6% decline from the fourth quarter of 2022.
- The gross margin for the first quarter of 2023 was reported at 1.7%, demonstrating a decrease from 12.2% in the same period of 2022 and 8.7% in the fourth quarter of 2022. Furthermore, the vehicle margin, which indicates the gross profit or loss of vehicle sales as a percentage of vehicle sales revenue, was negative 2.5% in Q1FY23, down from 10.4% in the same period of 2022 and 5.7% in the fourth quarter of 2022.
- XPEV experienced a net loss of RMB 2.34 billion (USD 0.34 billion) in the first quarter of 2023, in comparison to a net loss of RMB 1.70 billion for the same period in 2022 and a net loss of RMB 2.36 billion in the fourth quarter of 2022. When excluding share-based compensation expenses, the non-GAAP net loss for Q1FY23 was RMB 2.21 billion (USD 0.32 billion), compared to RMB 1.53 billion for the same period in 2022 and RMB 2.21 billion in the previous quarter.
- Basic and diluted net loss per American depositary share (ADS) were both RMB 2.71 (USD 0.40), while basic and diluted net loss per ordinary share were both RMB 1.36 (USD 0.20) for the first quarter of 2023. Similarly, non-GAAP basic and diluted net loss per ADS were both RMB 2.57 (USD 0.37), and non-GAAP basic and diluted net loss per ordinary share were both RMB 1.28 (USD 0.19) for the same period.
- As of March 31, 2023, XPEV's cash and cash equivalents, restricted cash, short-term investments, and time deposits amounted to RMB 34.12 billion (USD 4.97 billion). This figure decreased from RMB 41.71 billion as of March 31, 2022, and RMB 38.25 billion as of December 31, 2022. The time deposits encompass restricted short-term deposits, short-term deposits, restricted long-term deposits, and both the current and non-current portions of long-term deposits.
Technical Observation (on the daily chart)
With a past year return of correction of almost 57.69%, the price has been in a persistent downward trend over the last year, with the medium-term positive trend evident by 35.11% return in previous six months. The price has been consolidating in the range of USD 8.00-USD 13.00 since November 30, 2023, with a breakout on the upside with decent volume. Also, the momentum indicator RSI (14 period) has broken above 70 levels, indicating some consolidation or some upside short-term potential. Price is also above to the 21-day SMA and 50-day SMA trend-following indicators, which can serve as dynamic short-term support respectively.
As per the above-mentioned price action and technical indicators analysis, a ‘Speculative Buy’ rating has been given to Xpeng Inc. at the closing market price of USD 13.42, as of June 30, 2023.
Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
How to Read the Charts?
The Green colour line reflects the 21-period simple moving average (SMA) while the red line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.
The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.
The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.
The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
The reference date for all price data, currency, technical indicators, support, and resistance levels is June 30, 2023. The reference data in this report has been partly sourced from REFINITIV.
Abbreviations
CMP: Current Market Price
SMA: Simple Moving Average
RSI: Relative Strength Index
USD: United States dollar
Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.
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