The first new car-making force to be included in the Hong Kong Stock Connect was born, and Xiaopeng Automobile rose more than 7% before the market.

On February 9, the Shenzhen Stock Exchange issued an announcement that in accordance with the relevant provisions of the "Shenzhen Stock Exchange Shenzhen-Hong Kong Stock Connect Business Implementation Measures", Xiaopeng Automobile was included in the list of Hong Kong Stock Connect stocks under the Shenzhen-Hong Kong Stock Connect, which officially took effect from February 9. Affected by this good news, Xiaopeng Automobile rose more than 7% before the market on the same day.

Image source: Shenzhen-Hong Kong Stock Connect

On August 27, 2020, Xiaopeng Motors officially landed on the New York Stock Exchange with stock code (NYSE: XPEV); on July 7, 2021, Xiaopeng Motors was listed on the Hong Kong Stock Exchange with the stock code "9868.HK", becoming the first major Chinese stock to complete a "dual major listing" on the New York Stock Exchange and the Hong Kong Stock Exchange in three years.

This time, Xiaopeng Automobile can also be said to have seized the opportunity again, becoming the first new car-making force to be included in the Hong Kong Stock Connect. After inclusion, eligible domestic investors can start buying Hong Kong stocks of Xiaopeng Motors, which will further enhance the liquidity of their company's shares.

Since 2021, Xiaopeng Automobile's sales have been rising. In January this year, Xiaopeng Automobile delivered a total of 12,922 new vehicles, an increase of 115% year-on-year, and has delivered more than 10,000 vehicles for five consecutive months. By model, the Xiaopeng P7 delivered 6,707 units in the same month, with a cumulative delivery of more than 80,000 vehicles in history; the Xiaopeng P5 delivered 4,029 vehicles, delivering more than 4,000 units for two consecutive months; and the Xiaopeng G3 series delivered 2,186 vehicles.

Relying on the joint efforts of the three models, the cumulative delivery volume of Xiaopeng Automobile in 2021 has reached 98,000 units, winning the 2021 annual new force sales championship, and this achievement is achieved in the context of the shortage of semiconductor parts and batteries.

In 2022, Xiaopeng G9 will also start delivery at the end of August, and Xiaopeng Automobile expects to further increase the delivery volume in 2022, with a target of 250,000 vehicles and a hit to 300,000 vehicles.

Based on the annual growth expectations, Xiaopeng Automobile officially said that the Xiaopeng Zhaoqing base will carry out technical transformation during the Spring Festival shutdown period from the end of January to the beginning of February this year. Once the renovation is complete, a large number of on-hand orders brought into 2022 are expected to accelerate deliveries.

Based on the good expectations of Xiaopeng Automobile's highly competitive product matrix and growth potential, CICC, Citi and other major banks have recently raised the target price of Xiaopeng Motors' Hong Kong stocks, with the highest target price reaching HK$357.

CICC believes that Xiaopeng Automobile adheres to the self-research of software and hardware full stack, builds scientific and technological advantages and business model innovation, realizes intelligent functions to take the lead in landing and rapid iteration, and continuously consolidates and strengthens differentiated advantages. Follow-up companies will make more breakthroughs in the fields of intelligent driving, intelligent cockpit, and efficient energy replenishment. Citibank reported that Xiaopeng Motors is the preferred stock in its new energy automobile industry, and it is expected that the future OTA of the city NGP, the listing of the flagship model G9, and the company's announcement to explore the Robotaxi business will be positive factors.