XPeng Inc, a leading Chinese smart electric-vehicle producer, has seen its stock rise in the two days since its inclusion the Shenzhen-Hong Kong Stock Connect Program.
Xpeng gained over 3 percent in Hong Kong trading on Thursday to close at HK$157.2 ($20.17) after hitting an intraday high of HK$161.8.
XPeng Inc announced Wednesday that its Class A ordinary shares have been included as eligible for inclusion in the Shenzhen-Hong Kong Stock Connect.
XPeng said it believes this development will help broaden the company’s investor base on the Chinese mainland, increase the trading liquidity of the shares, and further raise brand awareness.
XPeng, which is dual-listed in Hong Kong and the US, said it delivered 12,922 electric vehicles in January, and that as of Jan 31, cumulative deliveries of the models P7, P5, G3, and G3i were over 150,000 units.
For the third quarter ended September, XPeng reported a net loss narrowed to 1.59 billion yuan ($250.1 million), down from 2.02 billion yuan the year before.
Total revenue increased by 187.4 percent from the year before to 5.71 billion yuan. The gross margin was 14.4 percent, compared with 4.6 percent for the same period of 2020.
Vehicle sales revenue came in at 5.46 billion yuan, up 187.7 percent from the comparable period the year before.
For the fourth quarter, the company has forecast deliveries of 34,500 to 36,500 vehicles.
Based on the favorable expectation of XPeng’s products and growth potential, a number of major banks such as China International Capital Corp and Citigroup Inc have recently raised their target prices for their Hong Kong shares, with the highest price being HK$357.
CICC’s latest research report showed that it will maintain the company’s earnings forecast and outperform industry rating, with a target price of HK$200, an upside of 27.22 percent from the current share price.
According to a report released by Citi, XPeng is its top stock pick in the new-energy vehicle sector.
Analysts said that the inclusion of XPeng in the Shenzhen-Hong Kong Stock Connect will help improve the liquidity of the company’s shares, and the introduction of the funds will also contribute to price correction in the secondary market.
(Source: ChinaDaily)
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