Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Equity Bottom-Up

<ul><li>Electric-vehicle maker Nio Inc. ended its holdout in China’s car price war and slashed base prices on all of its vehicles by 30,000 yuan ($4,200) in hopes of bolstering sales amid escalating competition in China, the world’s largest auto market.</li><li>Nio also pulled the plug on its free battery-exchange service for car buyers and introduced a pay-as-you-go system and a 30,000 yuan lifetime swap service.</li><li>The vehicle price cuts announced Monday will reduce the starting price of Nio’s new electric SUV ES6 to 338,000 yuan. The price of the mid-size electric sedan model ET5 will be lowered to 298,000 yuan. The changes take effect immediately, Nio said.</li></ul>

Electric-vehicle maker Nio Inc. ended its holdout in China’s car price war and slashed base prices on all of its vehicles by 30,000 yuan ($4,200) in hopes of bolstering sales amid escalating competition in China, the world’s largest auto market.Nio also pulled the plug on its free battery-exchange service for car buyers and introduced a pay-as-you-go system and a 30,000 yuan lifetime swap service.The vehicle price cuts announced Monday will reduce the starting price of Nio’s new electric SUV ES6 to 338,000 yuan. The price of the mid-size electric sedan model ET5 will be lowered to 298,000 yuan. The changes take effect immediately, Nio said.

Nio Ends Holdout in China’s Auto Price War

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.

<ul><li>Our top pick. Li Auto’s 1Q23 results beat our previous forecasts. We believe its profitability could sustain with GPM’s sequential improvement.</li><li>We are still of the view that Li Auto is best positioned among Chinese NEV start-ups, with the highest chance to become a long-term winner.</li><li>Apart from its products, we like the company’s high self-discipline in costs and business expansion even as it is much more resourceful than before.</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.

Our top pick. Li Auto’s 1Q23 results beat our previous forecasts. We believe its profitability could sustain with GPM’s sequential improvement.We are still of the view that Li Auto is best positioned among Chinese NEV start-ups, with the highest chance to become a long-term winner.Apart from its products, we like the company’s high self-discipline in costs and business expansion even as it is much more resourceful than before.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) – 1Q23 beat with sustainable profitability ahead

<ul><li>Our top pick. Li Auto’s 4Q22 earnings were largely in line with our previous forecasts, in terms of both revenue and net profit.</li><li>Management projects recordhigh sales volume in 1Q23, which could be followed by another all-time high deliveries in 2Q23.</li><li>We believe such sequential growth in sales volume could be a positive catalyst for its share price. </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.

Our top pick. Li Auto’s 4Q22 earnings were largely in line with our previous forecasts, in terms of both revenue and net profit.Management projects recordhigh sales volume in 1Q23, which could be followed by another all-time high deliveries in 2Q23.We believe such sequential growth in sales volume could be a positive catalyst for its share price. 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.

Contemporary Amperex Technology (CATL) / Equity Bottom-Up

Contemporary Amperex Technology (CATL) (300750 CH)

<ul><li>Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest electric-vehicle (EV) battery-maker, is in talks to offer automakers steeply discounted prices in exchange for sourcing the vast bulk of their power cells from the company in a bid to stave off growing competition from smaller rivals, Caixin has learned.</li><li>If the plan goes ahead, CATL will sell the strategic clients EV batteries made from self-manufactured lithium carbonate at a low price.</li><li>In return, they will be required to sign a contract committing them to buy 80% of their EV batteries from CATL over the next three years, a person close to the company told Caixin on Sunday.</li></ul>

Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest electric-vehicle (EV) battery-maker, is in talks to offer automakers steeply discounted prices in exchange for sourcing the vast bulk of their power cells from the company in a bid to stave off growing competition from smaller rivals, Caixin has learned.If the plan goes ahead, CATL will sell the strategic clients EV batteries made from self-manufactured lithium carbonate at a low price.In return, they will be required to sign a contract committing them to buy 80% of their EV batteries from CATL over the next three years, a person close to the company told Caixin on Sunday.

CATL Offering Steep Discounts to Automakers in Quid Pro Quo Deal, Source Says

<ul><li>Our top pick. We project Li Auto’s net profit to be RMB 205mn in 4Q22E amid record-high quarterly sales volume.</li><li>We also expect Li Auto’s profitability to be more sustainable in FY23E, although we are more conservative than consensus by accounting for the overall industry headwinds.</li><li>We believe Li Auto is still best positioned among the NEV trio to be a long-term winner, in terms of sales and profitability</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.

Our top pick. We project Li Auto’s net profit to be RMB 205mn in 4Q22E amid record-high quarterly sales volume.We also expect Li Auto’s profitability to be more sustainable in FY23E, although we are more conservative than consensus by accounting for the overall industry headwinds.We believe Li Auto is still best positioned among the NEV trio to be a long-term winner, in terms of sales and profitabilityContent 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) – 4Q22E net profit likely to turn positive

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 (LI US)

Nio Ends Holdout in China’s Auto Price War

Electric-vehicle maker Nio Inc. ended its holdout in China’s car price war and slashed base prices on all of its vehicles by 30,000 yuan ($4,200)...

Caixin Global

Li Auto Inc. (LI US) – 1Q23 beat with sustainable profitability ahead

Our top pick. Li Auto’s 1Q23 results beat our previous forecasts. We believe its profitability could sustain with GPM’s sequential improvement.

CMB International

Li Auto Inc. (LI US) – Well on track

Our top pick. Li Auto’s 4Q22 earnings were largely in line with our previous forecasts, in terms of both revenue and net profit.

CMB International

CATL Offering Steep Discounts to Automakers in Quid Pro Quo Deal, Source Says

Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest electric-vehicle (EV) battery-maker, is in talks to offer automakers steeply...

Caixin Global

Li Auto Inc. (LI US) – 4Q22E net profit likely to turn positive

We also expect Li Auto’s profitability to be more sustainable in FY23E, although we are more conservative than consensus by accounting for the...

CMB International

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