Major Bank Ratings | UOB Kay Hian: Lowers XPeng's Target Price to HK$125, Surge in R&D Spending Offsets Delivery Growth Momentum

Glonghui, January 14th｜UOB Kay Hian released a report stating that XPeng Motors has set a delivery target of 550,000 to 600,000 vehicles for 2026 (a year-on-year increase of 28-40%), based on a strong product lineup and a doubling of export volume, which is higher than the bank's own estimate. Due to new investments in advanced driver assistance systems, robotaxi, and humanoid robots, R&D expenditure in 2026 may increase to over 10 billion yuan. The bank maintains its 2025 net loss forecast for XPeng at 1.481 billion yuan, implying a Q4 net profit forecast of 42 million yuan, while market consensus expects 100 million yuan. Based on higher R&D spending, the bank has revised down its 2026 and 2027 net profit forecasts by 39% and 6%, respectively; it maintains a “Buy” rating but lowers the target price from HK$145 to HK$125.