BOCI commented in a report that although the consolidated gross profit margin of LI AUTO-W (02015.HK) -19.250 (-19.269%) Short selling $740.94M; Ratio 18.615% (LI.US) remained at a healthy level of more than 20% in 1Q24, the automaker recorded an operating loss of RMB585 million. Its adjusted net profit declined 9.4% YoY to RMB1.28 billion, which was weaker than expected.
LI AUTO management guided that the gross profit margin for 2Q24 may drop by 1 ppt to approximately 18% due to an increase in the sales volume of the L6, a lower margin model. Sales volume guidance for 2Q is 105,000 to 110,000 units, implying that the average monthly sales volume in May and June will return to approximately 40,000 units. Management expected monthly sales to return to 50,000 units between July and August.
In addition, LI AUTO will delay the launch of its new battery electric vehicle (BEV) until 1H25 to prepare for charging, sales and marketing strategies.
BOCI lowered its sales forecasts on LI AUTO for 2024 and 2025 to 500,000 and 665,000 units and dropped its non-GAAP net profit forecast by 22% to 25%. The broker maintained a Buy rating on the carmaker and reduced its ADR and Hong Kong share target prices to US$35 and HK$135 respectively.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-05-21 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)
