XPeng Inc.

XPeng Inc. (NYSE: XPEV) is a Chinese company that specialises in smart electric vehicle design, development, production, and sales (Smart EV). Environmentally friendly vehicles, such as an SUV (the G3) and a four-door sports sedan, are the company's primary products (the P7). Smart EVs are primarily aimed at China's passenger vehicle market's mid-to-high-end segment.

Key Highlights

• The company reported YoY growth of 200.07% in total revenue to RMB 8.56 billion in Q4FY21 (ended December 31, 2021) compared to RMB 2.85 billion in Q4FY20.
• XPEV’s net loss increased to RMB 1.29 billion in Q4FY21 vs. RMB 787.42 million in Q4FY20.
• As of December 31, 2021, the company had cash and cash equivalents (including short-term investments) of RMB 39.72 billion and total debt of RMB 1.68 billion.
• Its ROE was -3.0% in Q4FY21, whereas the industry median stood at 0.9%.
• Significantly low net margin -15.0% in Q4FY21 vs. industry median of 5.2%.
• On March 22, 2022, XPEV announced that the XPENG P7 smart sports sedan had become the first model from a Chinese pure-EV brand to reach the production milestone of 100,000 units.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock is leaning towards the lower end of its 52-week range of USD 18.01 to USD 56.45.

Conclusion: Considering the company’s growth in topline, expansion of net loss, technical indicators, and associated risks. We recommend a "Watch" rating on the stock at the current price of USD 28.33, down 2.25%, as of April 07, 2022, at 12:16 PM PDT.

Technical Price Chart (as on April 07, 2022, at 12:16 PM PDT). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

*Current price as of April 07, 2022, at 12:16 PM PDT

Investors 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.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.