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

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>In 4Q23, revenue grew by 136% and operating profit was significantly higher than the market consensus.</li>
<li>Li Auto grew the most rapidly among the top-ten Chinese NEV sellers.</li>
<li>We believe Li Auto will be one of the winners after the market gets more concentrated. Upgrade to Hold.</li>
</ul>


In 4Q23, revenue grew by 136% and operating profit was significantly higher than the market consensus.
Li Auto grew the most rapidly among the top-ten Chinese NEV sellers.
We believe Li Auto will be one of the winners after the market gets more concentrated. Upgrade to Hold.


Li Auto (LI US): 4Q23, High Growth and Profit, A Winner of Market Concentration, Upgraded to Hold

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/1211 HK/ JKS US/601012 CH/688599 CH/002459 CH:China cancels and reduces export tax rebate for certain China's advantageous products, forcing production capacity to be rationalize and export prices to rise.(///////////)</li>
<li>1810 HK/LI US/NIO US/XPEV US: It is said that Geely Group is preparing to merge its hybrid and pure electric brands under Zeekr（///////）</li>
<li>BEKE US:Mid-November Home Transaction Growth Remains Strong in First-Tier Cities, While Growth in Second- and Third-Tier Cities Slows Down (+)</li>
</ul>


300750 CH/1211 HK/ JKS US/601012 CH/688599 CH/002459 CH:China cancels and reduces export tax rebate for certain China's advantageous products, forcing production capacity to be rationalize and export prices to rise.(///////////)
1810 HK/LI US/NIO US/XPEV US: It is said that Geely Group is preparing to merge its hybrid and pure electric brands under Zeekr（///////）
BEKE US:Mid-November Home Transaction Growth Remains Strong in First-Tier Cities, While Growth in Second- and Third-Tier Cities Slows Down (+)


[Blue Lotus Daily]:300750 CH/1211 HK/JKS US/601012 CH/688599 CH/002459CH/1810HK/LI/NIO/XPEV/BEKE/ZTO

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Tencent Music Entertainment Group / Equity Bottom-Up

<ul>
<li>Hong Kong market sectors outperforming since the stimulus in September are Consumer Discretionary and Healthcare as Utilities, Telecom and Energy lag.</li>
<li>
<a href="https://www.smartkarma.com/entities/crrc-corp-ltd-461535b2-37ac-4589-b4d9-8b71c06c43b8" target="_blank" data-smartkarma-citation="entities:124:1" rel="noopener">CRRC Corp Ltd H (1766 HK)</a> gets BUY recommendations as its results point to continued strength in the rail equipment sector with passenger volume surging.
</li>
<li>
<a href="https://www.smartkarma.com/entities/tencent-music-entertainment-group" target="_blank" data-smartkarma-citation="entities:36601:1" rel="noopener">Tencent Music Entertainment Group (1698 HK)</a> reported solid results as it shifts to a pay-to-stream subscription model. <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> had a blowout quarter with EV sales surging.
</li>
</ul>


Hong Kong market sectors outperforming since the stimulus in September are Consumer Discretionary and Healthcare as Utilities, Telecom and Energy lag.

CRRC Corp Ltd H (1766 HK) gets BUY recommendations as its results point to continued strength in the rail equipment sector with passenger volume surging.


Tencent Music Entertainment Group (1698 HK) reported solid results as it shifts to a pay-to-stream subscription model. Xiaomi Corp (1810 HK) had a blowout quarter with EV sales surging.



BUY/SELL/HOLD: Hong Kong Stock Updates (NOVEMBER 18)

<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

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) - 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

Li Auto (LI US): 4Q23, High Growth and Profit, A Winner of Market Concentration, Upgraded to Hold

In 4Q23, revenue grew by 136% and operating profit was significantly higher than the market consensus. Li Auto grew the most rapidly among the top...

Ming Lu

[Blue Lotus Daily]:300750 CH/1211 HK/JKS US/601012 CH/688599 CH/002459CH/1810HK/LI/NIO/XPEV/BEKE/ZTO

China cancels export tax rebate, Geely Group to merge electric brands, home transaction growth strong in first-tier cities.

Blue Lotus Research Institute

BUY/SELL/HOLD: Hong Kong Stock Updates (NOVEMBER 18)

Hong Kong has seen its Consumer Discretionary and Healthcare sectors perform well since the stimulus in September. CRCC has had several buy...

David Mudd

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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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

Li Auto (LI US): 4Q23, High Growth and Profit, A Winner of Market Concentration, Upgraded to Hold

In 4Q23, revenue grew by 136% and operating profit was significantly higher than the market consensus. Li Auto grew the most rapidly among the top...

Ming Lu

[Blue Lotus Daily]:300750 CH/1211 HK/JKS US/601012 CH/688599 CH/002459CH/1810HK/LI/NIO/XPEV/BEKE/ZTO

​China cancels export tax rebate, Geely Group to merge electric brands, home transaction growth strong in first-tier cities.

Blue Lotus Research Institute

BUY/SELL/HOLD: Hong Kong Stock Updates (NOVEMBER 18)

Hong Kong has seen its Consumer Discretionary and Healthcare sectors perform well since the stimulus in September. CRCC has had several buy...

David Mudd

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

China cancels export tax rebate, Geely Group to merge electric brands, home transaction growth strong in first-tier cities.