Bank of America Securities issued a report stating thathivenftgames, Xiaopeng (9868hivenftgames.HK) First quarter revenue 65hivenftgames.50 million yuan, up 62% year-on-year and down 50% quarter-on-quarter. The overall gross profit margin was 12.9%, up 11.2 percentage points year-on-year and 6.7 percentage points quarter-on-quarter, exceeding the bank's expectationshivenftgames9.4%, mainly because it began to recognize the technology service revenue of G9's cooperation with Volkswagen, which promoted the overall gross profit margin. The automobile profit margin of 5.5%, which is lower than the bank's estimate of 6%, was mainly affected by loss of inventory provisions and P5 purchase commitments. The non-GAAP net loss was RMB 1.41 billion, a 36% year-on-year and a 20% quarter-on-quarter decline, which was better than the bank's expected loss of RMB 2 billion. The bank lowered its sales forecast for the three-year period from this year to 2026 by 13%, 16% and 15% respectively, and lowered its target price from HK$52.7 to HK$49.5 to reflect the latest sales and free cash flow forecasts and maintain its buy rating as it anticipates a strong product line in the second half of the year.
