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>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?

<ul><li>We project Li Auto’s net profit to rise 27% QoQ to RMB 1.2bn in 2Q23E, and therefore raise its FY23E net profit to RMB 5.0bn.</li><li>Profitability in FY24E could also beat expectation on greater economies of scale.</li><li>We raise FY24E net profit by 83% to RMB 9.2bn with a conservative sales-volume assumption of 0.45mn units. </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 project Li Auto’s net profit to rise 27% QoQ to RMB 1.2bn in 2Q23E, and therefore raise its FY23E net profit to RMB 5.0bn.Profitability in FY24E could also beat expectation on greater economies of scale.We raise FY24E net profit by 83% to RMB 9.2bn with a conservative sales-volume assumption of 0.45mn units. 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) – 2Q23 Earnings Preview: NP to Rise QoQ in FY23E

<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

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

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) – 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

Li Auto Inc. (LI US) – 2Q23 Earnings Preview: NP to Rise QoQ in FY23E

We project Li Auto’s net profit to rise 27% QoQ to RMB 1.2bn in 2Q23E, and therefore raise its FY23E net profit to RMB 5.0bn.

CMB International

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

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