- 3Q Vehicle Deliveries Forecast: Li Auto forecasts vehicle deliveries between 145,000 to 155,000 units, surpassing the estimate of 137,725 units.
- Revenue Forecast: Expected revenue for the 3rd quarter is between 39.4 billion yuan to 42.2 billion yuan, exceeding the estimate of 39.7 billion yuan.
- 2Q Revenue: Revenue increased by 11% year over year to 31.68 billion yuan, beating the estimate of 31.42 billion yuan.
- 2Q Vehicle Deliveries: Delivered 108,581 units, a 25% year-over-year increase; estimate was 108,611 units.
- 2Q Vehicle Sales: Vehicle sales reached 30.32 billion yuan, marking an 8.4% increase year over year, which beat the estimate of 29.99 billion yuan.
- Adjusted Net Income: Adjusted net income for 2nd quarter was 1.50 billion yuan, a 44% decrease year over year.
- Adjusted Earnings per American Depository Receipts (ADR): 1.42 yuan compared to 2.58 yuan year over year.
- Earnings per ADR: Earnings were 1.05 yuan, a decrease from 2.18 yuan year over year. This, however, exceeded the estimate of 1.00 yuan.
- Gross Margin: Gross margin stood at 19.5%, down from 21.8% year over year, but slightly above the estimate of 19.3%.
- Free Cash Flow: Negative free cash flow of 1.85 billion yuan, compared to a positive 9.62 billion yuan year over year.
- CEO Comments: Xiang Li noted that Li Auto became the sales leader of Chinese automotive brands in the RMB200,000 and above NEV market due to strong model performance and store efficiency.
- Pre-Market Trading: Shares fell 2.5% in pre-market trading to $20.70.
- Analyst Ratings: The company has 32 buys, 2 holds, and 1 sell recommendation.
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Li Auto on Smartkarma
Analyst coverage on Li Auto on Smartkarma provides a diverse range of perspectives. Eric Wen’s insight highlights China’s substantial stimulus packages benefiting the EV sector, favoring market leaders like BYD. Mohshin Aziz remains bullish on LiAuto, emphasizing its growth potential post-2024 despite industry challenges. In contrast, Ming Lu‘s bearish view criticizes Li Auto’s negative operating profit and sales decline, suggesting a sell rating. Eric Wen‘s second note underscores Li Auto’s positive performance and potential export growth, while cautioning on gross margin risks if sedan targets are met.
Overall, the analyst consensus on Li Auto varies from bullish to bearish sentiments, reflecting the dynamic nature of the EV market. Investors keen on Li Auto should consider the differing viewpoints by Eric Wen, Mohshin Aziz, and Ming Lu to make informed decisions. Eric Wen‘s favorable outlook on Li Auto’s market positioning and growth potential contrasts with Ming Lu‘s concerns about operational performance, providing a balanced view for investors evaluating Li Auto’s stock.
A look at Li Auto Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Li Auto Inc., a Chinese automaker, is positioned for long-term success based on a comprehensive analysis of its key factors. With an impressive Growth score of 5 and a strong Resilience rating also at 5, the company is primed for sustained expansion and able to weather market challenges effectively. This indicates a positive trajectory for Li Auto’s market performance and overall viability in the electric vehicle sector.
While the company scores lower in Value and Momentum at 2, and even lower in Dividend at 1, the focus on growth and resilience are significant indicators of its future potential. Investors looking for a growth-oriented opportunity in the electric vehicle industry may find Li Auto a compelling choice, considering its strategic positioning and strong emphasis on innovative new energy electric SUVs.
Summary: Li Auto Inc. is a Chinese automobile manufacturer specializing in smart new energy electric SUVs, catering to the growing market demand for sustainable transportation solutions in China.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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