The analyst rating for XPENG-W (09868.HK) is maintained as "Outperform" by CLSA due to the company's "dual-power strategy," which is expected to enhance its market penetration in northern Chinese cities. Despite anticipated weak domestic automotive demand in 2026, CLSA projects that XPENG-W's vehicle sales will remain resilient, achieving 471,000 units with a 10% year-over-year growth. However, the target price has been reduced from HKD106 to HKD77 due to challenges such as rising raw material costs and increased R&D expenses related to AI, which may slow the company's progress towards breakeven.
