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 our top pick. Li Auto’s strong beat in 4Q23 GPM led to an all-time high operating margin of 7.3%.</li><li>Its FY23 net margin of 9.5% was also much higher than its guidance of 5% in mid-2023.</li><li>Management has also provided a clear path to achieve its FY24 sales target and is still quite self-disciplined in costs and expansion.</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 our top pick. Li Auto’s strong beat in 4Q23 GPM led to an all-time high operating margin of 7.3%.Its FY23 net margin of 9.5% was also much higher than its guidance of 5% in mid-2023.Management has also provided a clear path to achieve its FY24 sales target and is still quite self-disciplined in costs and expansion.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) - 4Q23 Results Set the Tone for Resilient FY24

Thematic (Sector/Industry)

<ul><li>Chinese automakers including BYD, NIO, Xpeng, Li Auto, Zeekr, Aion, Deepal, Neta, Leap, Xiaomi etc reported their Apr 2024 sales volumes on 1 May 2024.</li><li>Total sales volume combined rose 43% YoY (ranging from -31% to +546%) and 2% MoM (ranging from -14% to +32%).</li><li>Li Auto, Xpeng miss, NIO beat. It appears to us that the weak sales of the Mega has spread into Li Auto’s other models.</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.

Chinese automakers including BYD, NIO, Xpeng, Li Auto, Zeekr, Aion, Deepal, Neta, Leap, Xiaomi etc reported their Apr 2024 sales volumes on 1 May 2024.Total sales volume combined rose 43% YoY (ranging from -31% to +546%) and 2% MoM (ranging from -14% to +32%).Li Auto, Xpeng miss, NIO beat. It appears to us that the weak sales of the Mega has spread into Li Auto’s other models.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.

Auto - Apr NEV sales beat; Price war continues

<ul><li>We expect Li Auto’s 4Q23E net profit to rise 2% QoQ to RMB 2.9bn, or a net profit of RMB 21,850 per vehicle.</li><li>We lower our FY24E net profit by 14% to RMB 12.6bn amid a prolonged price war.</li><li>We are of the view that its current valuation of 16x our FY24E P/E is attractive given Li Auto’s growth potential 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.

We expect Li Auto’s 4Q23E net profit to rise 2% QoQ to RMB 2.9bn, or a net profit of RMB 21,850 per vehicle.We lower our FY24E net profit by 14% to RMB 12.6bn amid a prolonged price war.We are of the view that its current valuation of 16x our FY24E P/E is attractive given Li Auto’s growth potential and profitability.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) – 4Q23 earnings preview: NP to be flat QoQ

<ul><li>We are of the view that Li Auto’s 3Q23 earnings were largely in line, as investors have factored in the stiffer competition.</li><li>We believe its upcoming flagship model, the Mega, could be a positive catalyst for share price, as its controversial design could lure more attention and lower the product cannibalization.</li><li>We cut our FY24E net profit by RMB 3bn to RMB 14.5bn, mainly due to its accelerated R&amp;D investments.</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.

We are of the view that Li Auto’s 3Q23 earnings were largely in line, as investors have factored in the stiffer competition.We believe its upcoming flagship model, the Mega, could be a positive catalyst for share price, as its controversial design could lure more attention and lower the product cannibalization.We cut our FY24E net profit by RMB 3bn to RMB 14.5bn, mainly due to its accelerated R&amp;D investments.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) – Mega Could Be a Positive Catalyst

<ul><li>We are of the view that Li Auto’s 2Q23 earnings are strong, especially with 8% net margin.</li><li>We therefore raise our 2H23E and FY24E earnings forecasts significantly.</li><li>That reminds us of Tesla which turned profitable at the end of 2019 and enjoyed the highest net profit growth in FY21 (+666% YoY). </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.

We are of the view that Li Auto’s 2Q23 earnings are strong, especially with 8% net margin.We therefore raise our 2H23E and FY24E earnings forecasts significantly.That reminds us of Tesla which turned profitable at the end of 2019 and enjoyed the highest net profit growth in FY21 (+666% YoY). 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) – A Replica of FY20-21 Tesla?

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.

Li Auto (LI US)

Li Auto Inc. (LI US) - 4Q23 Results Set the Tone for Resilient FY24

Maintain our top pick. Li Auto’s strong beat in 4Q23 GPM led to an all-time high operating margin of 7.3%. Its FY23 net margin of 9.5% was also...

CMB International

Auto - Apr NEV sales beat; Price war continues

Chinese automakers including BYD, NIO, Xpeng, Li Auto, Zeekr, Aion, Deepal, Neta, Leap, Xiaomi etc reported their Apr 2024 sales volumes on 1 May...

CMB International

Li Auto Inc. (LI US) – 4Q23 earnings preview: NP to be flat QoQ

We are of the view that its current valuation of 16x our FY24E P/E is attractive given Li Auto’s growth potential and profitability.

CMB International

Li Auto Inc. (LI US) – Mega Could Be a Positive Catalyst

We believe its upcoming flagship model, the Mega, could be a positive catalyst for share price, as its controversial design could lure more...

CMB International

Li Auto Inc. (LI US) – A Replica of FY20-21 Tesla?

We are of the view that Li Auto’s 2Q23 earnings are strong, especially with 8% net margin. We therefore raise our 2H23E and FY24E earnings...

CMB International