Tianfeng: XPENG-W(09868) discloses progress in self-developed global model, maintains "buy" rating.

Tianfeng released a research report stating that as a host factory with a full-stack self-research system, XPENG-W (09868) will have a clearer pace for its self-developed chips, Siasun Robot & Automation, intelligent driving, and base world model. The X9 global debut is expected to surpass the previous level in sales volume with a starting price of 359,800 yuan, and the release of the X7 and the launch of new extended-range models in the second half of the year may be imminent. Tianfeng maintains a "buy" rating, with revenue expected to reach RMB 93.59/140.22/169.58 billion in 2025/2026/2027, respectively. Main points from Tianfeng: Event: On April 14, 2025, XPENG held an AI technology sharing conference in Hong Kong, unveiling the development of a large-scale automated driving model with 720 billion parameters, known as the "XPENG world base model," for the first time. They also officially launched the new X9 in 2025 and announced that the XPENG Turing AI chip will begin mass production and implementation of L3 level intelligent driving by the end of 2025. The flying car is expected to be in mass production and delivery by 2026, and the XPENG AISiasun Robot & Automation Iron is expected to enter industrialized mass production by 2026. XPENG reveals the progress of the world model for the first time, with three major phases of success: XPENG revealed the progress of the large-scale automated driving model with 720 billion parameters, and has developed a large-scale base model which is approximately 35 times the mainstream VLA model's parameter scale. In addition, the XPENG world model also has a chain inference capability (CoT), allowing for complex reasoning based on a deep understanding of the real world, similar to human cognition, and translating the reasoning results into actions such as steering, braking, etc., interacting with the physical world, and providing underlying technical support for the next generation of advanced intelligent driving and Siasun Robot & Automation AI brain. The new all-electric MPV X9 is launched, starting at only 359,800 yuan. The X9 comes in four versions, including 650 Long Endurance Max, 740 Super Long Endurance Max, 702 Four-wheel Drive High Performance Max, and Starship Edition, with official prices of 359,800 yuan, 37.98 yuan, 39.98 yuan, and 41.98 yuan respectively. The new X9 is equipped with the Turing AI intelligent driving system as standard, and all models come with aisle space zero-gravity space seats in the rear, as well as intelligent dual-chamber air springs and intelligent variable damping as standard. Self-developed software and hardware full-stack, Siasun Robot & Automation + low-altitude economic layout is ready to be launched. To meet the computational demands of advanced AI intelligent driving, XPENG's self-developed core technology, the XPENG Turing AI chip, specifically customized for large models, has a neural network that can handle up to 30 billion parameters, three times the capacity of existing chips, and will be mass-produced and implemented in mainland China in the second quarter of 2025. As the world's first chip that can be simultaneously applied in AI cars, AISiasun Robot & Automation, and flying cars, the Turing AI chip not only provides computational support for intelligent driving but also expands technical support for aerial travel for XPENG. Additionally, XPENG's first split-type flying car land carrier program is set to achieve mass production and delivery in 2026, and the IRONSiasun Robot & Automation, developed by XPENG over five years, will also be equipped with the Turing AI chip, which, combined with the intelligent driving system, will be used in areas such as factory automation production lines and store services. Risk warning: New car models may not meet expectations; the pace of intelligent driving advancement may not meet expectations; the new energy industry and policies may not meet expectations.