External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Maintain BUY. We are of the view that management is likely to prioritize sales volume over margins for the upcoming i6 following its weak sales in recent months.</li><li>We expect aggressive pricing to help Li Auto regain sales traction.</li><li>Moreover, management has also decided to shorten the model cycle from FY26E. Both could be positive catalysts for its share price, in our view.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Maintain BUY. We are of the view that management is likely to prioritize sales volume over margins for the upcoming i6 following its weak sales in recent months.We expect aggressive pricing to help Li Auto regain sales traction.Moreover, management has also decided to shorten the model cycle from FY26E. Both could be positive catalysts for its share price, in our view.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Li Auto Inc. (LI US/2015 HK) - More Aggressive Pricing, Shorter Model Cycle to Regain Sales Traction

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>There are currently 76 index constituents and we can (maybe? finally! hopefully 🤞) get to 80 members in March before commencing the next leg up to 100 index constituents.</li>
<li>We list 10 potential inclusions to the index in March. Adding all 10 stocks will lead to over 6% one-way turnover, so there will be fewer inclusions.</li>
<li>All stocks will have over 1 day of ADV to buy from passive trackers. Some stocks have short interest of over 7% of float.</li>
</ul>


There are currently 76 index constituents and we can (maybe? finally! hopefully 🤞) get to 80 members in March before commencing the next leg up to 100 index constituents.
We list 10 potential inclusions to the index in March. Adding all 10 stocks will lead to over 6% one-way turnover, so there will be fewer inclusions.
All stocks will have over 1 day of ADV to buy from passive trackers. Some stocks have short interest of over 7% of float.


HSI Index Rebalance Preview: Better Late Than Never?

<ul><li>Maintain BUY. Li Auto’s 4Q24 NP beat underscored its superb cost control capabilities, which could make its profits more resilient in a more competitive 2025.</li><li>We are of the view that FY25 picture is a bit mixed for Li Auto given the rising competition.</li><li>We are less worried than the market about the sales cannibalization from BEVs, given Li Auto’s superb product positioning in the past. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</li></ul>

Maintain BUY. Li Auto’s 4Q24 NP beat underscored its superb cost control capabilities, which could make its profits more resilient in a more competitive 2025.We are of the view that FY25 picture is a bit mixed for Li Auto given the rising competition.We are less worried than the market about the sales cannibalization from BEVs, given Li Auto’s superb product positioning in the past. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Li Auto Inc. (LI US/2015 HK) - Cost Control, AI as Keys to FY25 Profits, Valuation

Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

<ul>
<li>
<a href="https://www.smartkarma.com/entities/li-auto-inc-3dbe6187-544f-40dd-b9f9-72fba9c0110e" target="_blank" data-smartkarma-citation="entities:33811:1" rel="noopener">Li Auto (2015 HK)</a> has surged recently due to the announcement of its new Li i8 model, accompanied by a significant rise in implied volatility.</li>
<li>The elevated implied volatility, with one- and two-month levels above the 90th and 80th percentiles respectively, presents an opportunity for bearish and neutral investors to sell call options.</li>
<li>March and April expirations are preferred due to the earnings release in May. </li>
</ul>



Li Auto (2015 HK) has surged recently due to the announcement of its new Li i8 model, accompanied by a significant rise in implied volatility.
The elevated implied volatility, with one- and two-month levels above the 90th and 80th percentiles respectively, presents an opportunity for bearish and neutral investors to sell call options.
March and April expirations are preferred due to the earnings release in May. 


Li Auto (2015 HK): Short Calls To Capitalize on High Volatility Amid Cautious Outlook

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Thematic (Sector/Industry)

<ul>
<li>Baidu announced that the company has seen a rapid uptake in its Robotaxi business on the mainland.</li>
<li>Baidu is at the forefront of the industry globally with its Fully Self Driving taxis available in more than 10 major cities in China.</li>
<li>Baidu's autonomous taxi unit, Apollo Go, has over 100 million kilometers of high-level autonomous safety driving mileage and holds over 5,000 autonomous driving patents.</li>
</ul>


Baidu announced that the company has seen a rapid uptake in its Robotaxi business on the mainland.
Baidu is at the forefront of the industry globally with its Fully Self Driving taxis available in more than 10 major cities in China.
Baidu's autonomous taxi unit, Apollo Go, has over 100 million kilometers of high-level autonomous safety driving mileage and holds over 5,000 autonomous driving patents.


CHINA: Fasten Your Seat Belts! BAIDU Accelerates in the Fast Growing Robotaxi Industry.

China

Li Auto Inc. manufactures automobiles. The Company designs, develops, and sells smart new energy electric sport utility vehicles. Li Auto conducts businesses in China.

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Li Auto (2015 HK)

Li Auto Inc. (LI US/2015 HK) - More Aggressive Pricing, Shorter Model Cycle to Regain Sales Traction

Maintain BUY. We are of the view that management is likely to prioritize sales volume over margins for the upcoming i6 following its weak sales in...

CMB International

HSI Index Rebalance Preview: Better Late Than Never?

Adding 4 stocks gets us to 80 members - a target that was to be reached by mid-2022. We list 10 potential adds where passive trackers will need to...

Brian Freitas

Li Auto Inc. (LI US/2015 HK) - Cost Control, AI as Keys to FY25 Profits, Valuation

Maintain BUY. Li Auto’s 4Q24 NP beat underscored its superb cost control capabilities, which could make its profits more resilient in a more...

CMB International

Li Auto (2015 HK): Short Calls To Capitalize on High Volatility Amid Cautious Outlook

With premiums of up to 9% in one month (113% p.a.), Li Auto's price surge and high implied volatility create a call selling opportunity for...

Gaudenz Schneider

CHINA: Fasten Your Seat Belts! BAIDU Accelerates in the Fast Growing Robotaxi Industry.

Baidu shares begin to re-rate as its new AI modil outperformed Google Gemini and Open AI's GPT-5. The new version of Ernie AI reasoning model also...

David Mudd

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Li Auto Inc. (LI US/2015 HK) - More Aggressive Pricing, Shorter Model Cycle to Regain Sales Traction

Maintain BUY. We are of the view that management is likely to prioritize sales volume over margins for the upcoming i6 following its weak sales in...

CMB International

HSI Index Rebalance Preview: Better Late Than Never?

Adding 4 stocks gets us to 80 members - a target that was to be reached by mid-2022. We list 10 potential adds where passive trackers will need to...

Brian Freitas

Li Auto Inc. (LI US/2015 HK) - Cost Control, AI as Keys to FY25 Profits, Valuation

Maintain BUY. Li Auto’s 4Q24 NP beat underscored its superb cost control capabilities, which could make its profits more resilient in a more...

CMB International

Li Auto (2015 HK): Short Calls To Capitalize on High Volatility Amid Cautious Outlook

With premiums of up to 9% in one month (113% p.a.), ​Li Auto's price surge and high implied volatility create a call selling opportunity for...

Gaudenz Schneider

CHINA: Fasten Your Seat Belts! BAIDU Accelerates in the Fast Growing Robotaxi Industry.

Baidu shares begin to re-rate as its new AI modil outperformed Google Gemini and Open AI's GPT-5. The new version of Ernie AI reasoning model also...

David Mudd

With premiums of up to 9% in one month (113% p.a.), Li Auto's price surge and high implied volatility create a call selling opportunity for...