Bank of China International has issued a research report adjusting its outlook on XPENG-W (HKEX: 09868).

Following the company's first-quarter results, which showed a net loss of RMB 1.8 billion, approximately RMB 250 million wider than the bank's forecast, the financial institution has revised its price target for the stock downward from HK$94 to HK$82. Despite this adjustment, the bank continues to recommend a "Buy" rating for the shares.

The report indicates that management's guidance points to a second quarter with gross margins holding steady sequentially and vehicle deliveries surging by 60-70% quarter-over-quarter. Based on this, the bank anticipates a significant narrowing of the net loss for Q2.

Furthermore, benefiting from an expected improvement in economies of scale, the analysis projects that the company will return to a net profit position in the second half of the year.

The bank's updated financial model now forecasts a net loss of RMB 1.213 billion for XPENG in 2026, with a turnaround to a net profit of RMB 1.541 billion projected for 2027.