＜Research＞Citi Upgrades XPENG-W (09868.HK) to Neutral, Elevates TP to $32.2

　　Citi Research commented in a report that the expected prolongation of future model product cycles and consolidation in the automotive market, which may continue until 2031, could lead to a recovery in the return on equity of major carmakers from 2H25 to early 2029.

　　Contrary to IHS's forecast of local brand market share reaching a high of 63.9% by 2025 and stabilising at 62% by 2031, Citi expected local brand market share to reach 66% by 2025 and further expand to 78% by 2031. Citi also forecasted market consolidation and concentration to occur faster than IHS expected due to a more aggressive export drive.

　　Related NewsHSBC Global Research Trims BYD COMPANY (01211.HK) TP to $322, Lowers NP Estimates

　　Among new energy vehicle makers, the broker noted that BYD COMPANY (01211.HK) 0.000 (0.000%) Short selling $217.47M; Ratio 29.972% and XPENG-W (09868.HK) +0.450 (+1.475%) Short selling $22.70M; Ratio 16.313% are the only ones whose product lifespans will be reduced YoY in 2025. By that year, the lifespan of hybrid car products will be about 23 months, much lower than the average of 37 months for traditional automakers. The broker expected BYD, LI AUTO-W (02015.HK) +2.600 (+3.691%) Short selling $43.28M; Ratio 12.664% , SERES (601127.SH) -1.140 (-1.330%) and ZEEKR (ZK.US) to have higher market shares in 2026 than in 2024.

　　Citi upgraded its rating on XPENG from Sell to Neutral and raised its H-share target price from $29.9 to $32.2.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-06-26 12:25.) (A Shares quote is delayed for at least 15 mins.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

　　Related NewsBOCOMI Upgrades XPENG-W (09868.HK) to Neutral, Citing Limited Shr Price Downside

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