XPENG-W Slumps Nearly 10% at Half-day as Multiple Brokers Say 2Q Losses Beat Expectations; Bullish on Robotics Business

XPENG-W (09868.HK) -4.640 (-9.732%) Short selling $273.96M; Ratio 29.672% opened 8.18% lower today (25th) and bottomed at HKD42.98. It closed the half-day session at HKD43.04, down 9.73%, with trading volume of 20.9963 million shares and turnover of HKD923 million.

Citi said in a report that XPENG-W's (09868.HK) -4.640 (-9.732%) Short selling $273.96M; Ratio 29.672% 2Q GAAP and non-GAAP net losses were RMB1.337 billion and RMB1.237 billion respectively, worse than the broker's and market expectations, mainly due to one-off investment losses. Overall gross margin during the period was 20.7%, while vehicle gross margin was 12.1%, broadly in line with expectations. Management guided 3Q deliveries at 115,000 to 121,000 vehicles, below investor expectations, mainly due to supply chain constraints affecting the MONA L03 model, with deliveries requiring four months, slowing the production ramp-up. Citi expected vehicle gross margin in 3Q and 4Q26 to remain stable compared with 2Q26, but overall gross margin would gradually decline as the proportion of EV sales rises. Citi cut the Hong Kong stock TP for XPENG-W (09868.HK) -4.640 (-9.732%) Short selling $273.96M; Ratio 29.672% from HKD87.7 to HKD83.6, and lowered the US stock TP for XPeng Inc. (XPEV.US) from USD22.5 to USD21.4, while maintaining a Buy rating. In addition, XPENG-W's humanoid robot financing officially commenced, with a post-money valuation of about USD6.3 billion. Citi estimated that assuming XPENG-W's valuation fully reflects the post-money valuation of the robotics business, its EV business is currently valued at about USD6.5 billion, equivalent to 0.5x forecast 2026 price-to-sales ratio.

G Sachs said in a report that XPENG-W's (09868.HK) -4.640 (-9.732%) Short selling $273.96M; Ratio 29.672% 2Q revenue and gross profit met expectations, but non-GAAP net profit missed the broker's and market expectations, mainly due to foreign exchange losses of RMB125 million and fair value losses of RMB103 million during the period. Revenue during the period rose 8% YoY to RMB19.7 billion, gross margin remained stable at 20.7%, and vehicle gross margin was 12.1%. G Sachs noted that 2Q EBIT was 13% above its expectations, mainly benefiting from lower-than-expected selling and administrative expenses. Selling and administrative expenses during the period were RMB2.5 billion, up 15% YoY and 33% QoQ, 4% below the broker's expectations. Non-GAAP net profit was 36% and 186% below G Sachs' and market consensus expectations respectively, mainly due to non-operating items such as foreign exchange and fair value losses. The broker maintained a Buy rating with an H-share TP of HKD77.

CLSA said in a report that XPENG-W's (09868.HK) -4.640 (-9.732%) Short selling $273.96M; Ratio 29.672% 2Q net loss of RMB1.3 billion was in line with its expectations. Investor focus is concentrated on XPENG-W's AI development, especially its humanoid robot business. XPENG-W's humanoid robot IRON completed a first-round financing exceeding USD900 million, with a post-money valuation of USD6.3 billion. XPENG-W expected IRON to enter mass production by end-2026, with monthly production capacity of about 1,000 units, and plans to begin external sales in 1H27. CLSA believed that combined with XPENG-W's continuously growing overseas auto business, the high-margin robotics business will provide further earnings momentum for the group in FY2027. The broker rated the stock Outperform with a TP of HKD80.

UBS said in a report that XPENG-W's (09868.HK) -4.640 (-9.732%) Short selling $273.96M; Ratio 29.672% 2Q operating loss of RMB1.143 billion was 12% higher than market consensus expectations, mainly due to lower-than-expected revenue and higher-than-expected selling and administrative expenses. GAAP net loss during the period was RMB1.337 billion, versus market expectations for a net loss of RMB433 million, mainly affected by foreign exchange losses of RMB125 million and long-term investment losses of RMB140 million. Non-auto service revenue grew 33% QoQ to RMB2.697 billion and surged 94% YoY, mainly benefiting from technology R&D services provided to Volkswagen. The service business generated gross profit of RMB2.025 billion for the non-auto segment, up 50% QoQ and 1.7x YoY, with service gross margin reaching 75.1%. Vehicle gross margin was 12.1%, flat QoQ but down 2.3 ppts YoY. Average selling price fell 6% QoQ to RMB165,000, but rose 2% YoY. As of end-June, the company held about RMB40 billion in cash and about RMB21 billion in net cash. In terms of valuation, XPENG-W currently trades at 0.9x forecast 2026 price-to-sales ratio, higher than LI AUTO-W (02015.HK) -1.180 (-2.386%) Short selling $56.92M; Ratio 28.895% at 0.7x and NIO-SW (09866.HK) -2.060 (-5.826%) Short selling $26.89M; Ratio 21.747% at 0.5x. Based on the robotics subsidiary's post-money valuation of USD6.3 billion, the value corresponding to XPENG-W's 68.4% stake is about USD4.3 billion, equivalent to about 37% of XPENG-W's current market capitalization of USD11.6 billion. UBS rated the stock Neutral with a US stock TP of USD18.

M Stanley said in a report that XPENG-W's (09868.HK) -4.640 (-9.732%) Short selling $273.96M; Ratio 29.672% 2Q results were in line with expectations. GAAP net loss was RMB1.3 billion, compared with RMB1.8 billion net loss in 1Q26, worse than the broker's expected net loss of RMB1 billion, mainly due to a larger gap in non-operating items, though operating profit was slightly better than expected. Revenue during the period rose 51% QoQ to RMB19.7 billion, near the lower end of guidance of RMB19.6 billion to RMB20.8 billion. Vehicle revenue rose 55% QoQ, while deliveries grew 65% QoQ, reflecting a 6% QoQ decline in average selling price, mainly because a higher MONA mix offset contributions from GX. Vehicle gross margin stayed flat QoQ at 12.1%, in line with the broker's expectations. Overall gross margin was 20.7%, up 0.1 ppts QoQ and above the broker's 18.5% expectation, benefiting from higher non-auto sales gross margin. Operating expenses rose 14% YoY amid new model launches. Selling and administrative expenses increased 33% QoQ to RMB2.5 billion, below the broker's RMB2.6 billion expectation, while R&D expenses remained well controlled at RMB2.9 billion QoQ, below the broker's RMB3 billion expectation. Management expected 3Q deliveries of 115,000 to 121,000 vehicles, equivalent to average monthly deliveries of 38,500 to 41,500 vehicles in Aug and Sep, compared with 38,000 vehicles delivered in Jul, benefiting from additional momentum from MONA L03 and G9L. Revenue guidance of RMB21.7 billion to RMB23.4 billion implies broadly stable average selling prices. The group's humanoid robotics subsidiary completed its first external financing round and introduced institutional investors. The broker viewed this as a positive catalyst, as the financing provides independent funding and an external investor base for the robotics business, and more importantly offers the market a valuation benchmark for the first time, helping separate the business from XPENG-W's overall valuation. The broker rated the stock Overweight with a TP of HKD96.

BofAS said in a report that XPENG-W's humanoid robotics subsidiary Dogotix completed its first external financing round on August 24, raising about USD900 million, marking a record single private financing in China's embodied AI sector. In this financing, XPENG-W subscribed USD200 million itself, while external investors including IDG Capital, BABA-W (09988.HK) +0.600 (+0.533%) Short selling $2.06B; Ratio 32.453% , TENCENT (00700.HK) -0.400 (-0.091%) Short selling $269.68M; Ratio 9.455% and Gaorong Capital subscribed a combined USD600 million, with management participating for USD100 million. The transaction implied a pre-money valuation of USD5 billion and a post-money valuation of USD6.3 billion. After completion, XPENG-W is expected to hold about 73.8% of Dogotix, and even after considering management warrants, a 15% equity incentive plan and reserved shares, its stake would still remain about 68.41%. BofAS believed the record financing represents important recognition of XPENG-W's embodied AI and humanoid robotics strategy. The funds will help strengthen model development, hardware innovation and manufacturing scale-up capabilities, supporting the transition from technology R&D to commercialization. The broker maintained a Buy rating on XPeng Inc. (XPEV.US) , with a TP of HKD74, and remained optimistic about long-term growth drivers including autonomous driving technology, new vehicle product lines and robotics business. (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-25 12:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)