Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>300750 CH/601012 CH/2208 HK/300274 CH:The growth rate of photovoltaic new installed capacity continued to slow down in the third quarter but rebounded in September.(///////)</li>
<li>300750 CH: CATL's all-solid-state battery enters prototype verification phase, faster than expected.(/)</li>
<li>NIO US/ LI US/1211 HK: NIO is rumoured to launch hybrid vehicles overseas in 2026 and sell them in the Middle East, North Africa and Europe.(/////)</li>
</ul>


300750 CH/601012 CH/2208 HK/300274 CH:The growth rate of photovoltaic new installed capacity continued to slow down in the third quarter but rebounded in September.(///////)
300750 CH: CATL's all-solid-state battery enters prototype verification phase, faster than expected.(/)
NIO US/ LI US/1211 HK: NIO is rumoured to launch hybrid vehicles overseas in 2026 and sell them in the Middle East, North Africa and Europe.(/////)


[Blue Lotus Daily]:300750 CH/601012 CH/2208 HK/300274 CH/NIO US/ LI US/1211 HK

Equity Research Analyst - Long-Short

Raj S, CA, CFA

<ul>
<li>
<a href="https://www.smartkarma.com/entities/geely-automobile-holdings-ltd" target="_blank" data-smartkarma-citation="entities:127:1" rel="noopener">Geely Auto (175 HK)</a> is at a pivotal stage in its transformation, and we expect it to outperform peers in the medium term.</li>
<li>Investors are seeing progress and strategic direction in three critical areas: new EV brands, increasing exports, and sustaining the success of ICE brands.</li>
<li>We are bullish about the EV capabilities of Chinese local OEMs and their ambition to enter global markets assertively. Geely Auto is one of the best plays on this theme.</li>
</ul>



Geely Auto (175 HK) is at a pivotal stage in its transformation, and we expect it to outperform peers in the medium term.
Investors are seeing progress and strategic direction in three critical areas: new EV brands, increasing exports, and sustaining the success of ICE brands.
We are bullish about the EV capabilities of Chinese local OEMs and their ambition to enter global markets assertively. Geely Auto is one of the best plays on this theme.


Geely Auto (175 HK): Initiation: A Key Play on China EV and Global Expansion Theme

Equity Bottom-Up

<ul>
<li>LI Auto (LI) reported C3Q24 top line, non-GAAP operating profit and GAAP net income 2.0%, 68% and in line vs. our estimates. </li>
<li>We expect LI’s share price to be range bound until its BEV SUV to debut in C2Q25. Facing a crowded market</li>
<li>We raise TP from US$22 to 25 but keep rating at SELL.</li>
</ul>


LI Auto (LI) reported C3Q24 top line, non-GAAP operating profit and GAAP net income 2.0%, 68% and in line vs. our estimates. 
We expect LI’s share price to be range bound until its BEV SUV to debut in C2Q25. Facing a crowded market
We raise TP from US$22 to 25 but keep rating at SELL.


[Li Auto (LI US, SELL, TP US$25) TP Change]: Excellence Under Pressure but Challenge Still Loom Big

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>Maintain BUY. We view Li Auto’s 3Q24 earnings as strong from average selling price, gross margin and operating cost control aspects.</li><li>The drag mainly came from share-based payment and fair value loss from its investee’s share price decline.</li><li>Although the information about its new BEVs in 2025 is very limited, we believe that the company has been building a solid foundation, including comprehensive charging infrastructure, larger showrooms and rapidly improving autonomous driving technologies, for new BEVs, especially after the failure of the Mega. </li></ul><p><em>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.</em></p>

Maintain BUY. We view Li Auto’s 3Q24 earnings as strong from average selling price, gross margin and operating cost control aspects.The drag mainly came from share-based payment and fair value loss from its investee’s share price decline.Although the information about its new BEVs in 2025 is very limited, we believe that the company has been building a solid foundation, including comprehensive charging infrastructure, larger showrooms and rapidly improving autonomous driving technologies, for new BEVs, especially after the failure of the Mega. 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) - Solid Earnings, Thorough Preparation Pave Way for FY25

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>LI’s revenue increased by 24% YoY in 3Q24, as deliveries climbed out of the trough.</li>
<li>LI achieved record operating profit and a record margin in 3Q24.</li>
<li>We believe the plunge after the result release just provides an upside of for the stock.</li>
</ul>


LI’s revenue increased by 24% YoY in 3Q24, as deliveries climbed out of the trough.
LI achieved record operating profit and a record margin in 3Q24.
We believe the plunge after the result release just provides an upside of for the stock.


Li Auto (LI US): Record Sales Volume in Sep and Record Operating Profit in 3Q24

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)

[Blue Lotus Daily]:300750 CH/601012 CH/2208 HK/300274 CH/NIO US/ LI US/1211 HK

Photovoltaic new installed capacity growth slows in Q3 but rebounds in September; CATL's all-solid-state battery advances quickly; NIO rumored to...

Blue Lotus Research Institute

Geely Auto (175 HK): Initiation: A Key Play on China EV and Global Expansion Theme

Geely Auto poised to outperform peers with focus on new EV brands, exports, making it a top play in context of our bullish view on Chinese OEMs'...

Raj S, CA, CFA

[Li Auto (LI US, SELL, TP US$25) TP Change]: Excellence Under Pressure but Challenge Still Loom Big

LI Auto reported solid financial results for the third quarter, but its share price is expected to remain stagnant until the debut of its BEV SUV...

Blue Lotus Research Institute

Li Auto Inc. (LI US) - Solid Earnings, Thorough Preparation Pave Way for FY25

Maintain BUY. We view Li Auto’s 3Q24 earnings as strong from average selling price, gross margin and operating cost control aspects.

CMB International

Li Auto (LI US): Record Sales Volume in Sep and Record Operating Profit in 3Q24

LI’s revenue increased by 24% YoY in 3Q24, as deliveries climbed out of the trough. LI achieved record operating profit and a record margin in 3Q24.

Ming Lu

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Blue Lotus Daily]:300750 CH/601012 CH/2208 HK/300274 CH/NIO US/ LI US/1211 HK

​Photovoltaic new installed capacity growth slows in Q3 but rebounds in September; CATL's all-solid-state battery advances quickly; NIO rumored to...

Blue Lotus Research Institute

Geely Auto (175 HK): Initiation: A Key Play on China EV and Global Expansion Theme

​Geely Auto poised to outperform peers with focus on new EV brands, exports, making it a top play in context of our bullish view on Chinese OEMs'...

Raj S, CA, CFA

[Li Auto (LI US, SELL, TP US$25) TP Change]: Excellence Under Pressure but Challenge Still Loom Big

​LI Auto reported solid financial results for the third quarter, but its share price is expected to remain stagnant until the debut of its BEV SUV...

Blue Lotus Research Institute

Li Auto Inc. (LI US) - Solid Earnings, Thorough Preparation Pave Way for FY25

Maintain BUY. We view Li Auto’s 3Q24 earnings as strong from average selling price, gross margin and operating cost control aspects.

CMB International

Li Auto (LI US): Record Sales Volume in Sep and Record Operating Profit in 3Q24

LI’s revenue increased by 24% YoY in 3Q24, as deliveries climbed out of the trough. LI achieved record operating profit and a record margin in 3Q24.

Ming Lu

Photovoltaic new installed capacity growth slows in Q3 but rebounds in September; CATL's all-solid-state battery advances quickly; NIO rumored to...

Geely Auto poised to outperform peers with focus on new EV brands, exports, making it a top play in context of our bullish view on Chinese OEMs'...

LI Auto reported solid financial results for the third quarter, but its share price is expected to remain stagnant until the debut of its BEV SUV...