On May 23, China Merchants Securities International issued a report reaffirming its "Overweight" rating on XPeng Motors (09868.HK) with a target price set at HK$115. The report projects a price-to-sales ratio of 2.5 times by fiscal year 2025, attributing this higher valuation to XPeng's more accelerated growth trajectory compared to other emerging automakers. It anticipates a compound annual growth rate (CAGR) of 56% in revenue from fiscal years 2024 to 2027, significantly outpacing its peers. Highlighting key developments, the report notes that beginning in May, XPeng will roll out significant new vehicle models, which are expected to propel share price growth. Furthermore, the company's delivery capacity, average selling price (ASP), and gross margin are poised for continued improvement. The report also predicts that XPeng's net loss attributable to shareholders for the first quarter of 2025 will amount to RMB 660 million, marking a 51.5% year-over-year reduction and a 50.1% quarter-over-quarter decrease, aligning with market expectations. With the introduction of a new product cycle and ongoing enhancements to its product portfolio, XPeng is anticipated to achieve profitability for the first time in the fourth quarter.