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 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>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 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

<ul><li>Li Auto’s 2Q24 operating expenses beat our forecast and such cost control could extend into 2H24.</li><li>We are of the view that Li Auto has made a comeback on sales volume with resilient pricing and margins.</li><li>Although some investors may wait for more details of its new BEVs, we think it could be oversold now.</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.

Li Auto’s 2Q24 operating expenses beat our forecast and such cost control could extend into 2H24.We are of the view that Li Auto has made a comeback on sales volume with resilient pricing and margins.Although some investors may wait for more details of its new BEVs, we think it could be oversold now.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) - Proven Resilience Gives Us Confidence in BEVs

<ul><li>We are of the view that Li Auto has lowered priority for its FY24E profitability and the sell-off after the 1Q24 earnings call has largely priced in such management mentality.</li><li>We believe the key lies in its new BEV strategy, EREV sales recovery in 2H24 and FY25 sales growth with BEVs being postponed.</li><li>1Q24 GP in line; R&amp;D and SG&amp;A dragged NP. Li Auto’s 1Q24 revenue was about 3% higher than our prior forecast, largely due to its other sales and services.</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 has lowered priority for its FY24E profitability and the sell-off after the 1Q24 earnings call has largely priced in such management mentality.We believe the key lies in its new BEV strategy, EREV sales recovery in 2H24 and FY25 sales growth with BEVs being postponed.1Q24 GP in line; R&amp;D and SG&amp;A dragged NP. Li Auto’s 1Q24 revenue was about 3% higher than our prior forecast, largely due to its other sales and services.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) - Is the Mega Lesson Worthwhile?

Thematic (Sector/Industry)

<ul><li>China’s passenger-vehicle (PV) retail sales volume fell 1% YoY in first four months of 2023, 2% higher than our forecast made in Dec 2022.</li><li>Wholesale volume also rose 7% YoY YTD, 3% higher than our prior forecast, largely due to doubled PV exports in the first four months of 2023.</li><li>Automakers in China started to cut inventories in Apr 2023, as we had expected.</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.

China’s passenger-vehicle (PV) retail sales volume fell 1% YoY in first four months of 2023, 2% higher than our forecast made in Dec 2022.Wholesale volume also rose 7% YoY YTD, 3% higher than our prior forecast, largely due to doubled PV exports in the first four months of 2023.Automakers in China started to cut inventories in Apr 2023, as we had expected.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.

China Auto Sector – Mixed picture ahead as inventory risk lingers

<ul><li>We summarize the Jan 2025 price discounts at dealers for major automakers in this report.</li><li>Note that Jan discounts for each automaker are calculated based on the weighted average of Dec 2024 retail sales volume for each model, as Jan 2025 retail sales volume data have not been released yet.</li><li>The industrywide average discounts widened by 0.3ppts MoM in Jan 2025, based on our calculations, mainly driven by Chinese automakers, including BYD, Leapmotor and GAC Aion, and German brands, such as BMW and Audi. BYD plans to cover the majority of its models with autonomous driving (AD) functions this year, which may have resulted in higher discounts for its existing 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.

We summarize the Jan 2025 price discounts at dealers for major automakers in this report.Note that Jan discounts for each automaker are calculated based on the weighted average of Dec 2024 retail sales volume for each model, as Jan 2025 retail sales volume data have not been released yet.The industrywide average discounts widened by 0.3ppts MoM in Jan 2025, based on our calculations, mainly driven by Chinese automakers, including BYD, Leapmotor and GAC Aion, and German brands, such as BMW and Audi. BYD plans to cover the majority of its models with autonomous driving (AD) functions this year, which may have resulted in higher discounts for its existing 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 - Leap, BYD, Aion Led Discount Increase in Jan

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)

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 Inc. (LI US) - Proven Resilience Gives Us Confidence in BEVs

Li Auto’s 2Q24 operating expenses beat our forecast and such cost control could extend into 2H24. We are of the view that Li Auto has made a...

CMB International

Li Auto Inc. (LI US) - Is the Mega Lesson Worthwhile?

We are of the view that Li Auto has lowered priority for its FY24E profitability and the sell-off after the 1Q24 earnings call has largely priced...

CMB International

China Auto Sector – Mixed picture ahead as inventory risk lingers

China’s passenger-vehicle (PV) retail sales volume fell 1% YoY in first four months of 2023, 2% higher than our forecast made in Dec 2022.

CMB International

Auto - Leap, BYD, Aion Led Discount Increase in Jan

Note that Jan discounts for each automaker are calculated based on the weighted average of Dec 2024 retail sales volume for each model, as Jan 2025...

CMB International

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