• Li Auto’s revenue forecast for the 2nd Quarter has missed estimates, with a prediction between 29.9 billion yuan and 31.4 billion yuan instead of the estimated 38.63 billion yuan.
• The projected vehicle deliveries is also less than the estimate with a forecast between 105,000 to 110,000 units rather than the estimated 130,692 units.
• The company’s first quarter results revealed a revenue of 25.63 billion yuan, showing a 36% increase compared to the preceding year, just ahead of the estimated 25.58 billion yuan.
• Vehicle deliveries in the first quarter were 80,400 units, showing a significant 53% rise year-on-year, yet they were slightly below the estimated 85,830 units.
• Vehicle sales generated 24.25 billion yuan, a 32% increase from last year, not meeting the estimated 26.71 billion yuan.
• Li Auto reported an adjusted net income attributable to holders of 1.28 billion yuan.
• Adjusted earnings per American depositary receipts were 1.21 yuan as opposed to 1.44 yuan year-on-year.
• Earnings per American depositary receipts were 56 RMB cents which is decreased from 89 RMB cents year-on-year, missing the estimate of 1.61 yuan.
• The company reported a gross margin of 20.6% which is a minor increase from 20.4% the previous year, slightly less than the estimated 20.7%.
• Li Auto reported a negative free cash flow of 5.06 billion yuan, dropping from a positive 6.70 billion yuan year-on-year.
• The CFO of Li Auto, Mr. Tie Li, stated that despite the introduction of a new model, product iterations, and pricing adjustments, the company’s first-quarter financial results remained solid.
• The Company currently holds 30 buy ratings, 2 hold ratings and no sell ratings.
Li Auto on Smartkarma
Analysts on Smartkarma have provided diverse insights on Li Auto Inc. Eric Wen, a bullish analyst, highlights Li Auto’s strong performance in surpassing expectations in revenue, operating profit, and net income. Despite potential gross margin challenges, Wen remains optimistic about Li’s future, raising the target price to US$52 and reiterating a BUY rating.
Ming Lu, another bullish analyst, emphasizes Li Auto’s impressive growth and profitability in the fourth quarter of 2023, leading to an upgrade to a Hold rating. However, Ming Lu also expresses a bearish sentiment on Li Auto’s valuation compared to Tesla, suggesting overvaluation. The analysts’ viewpoints provide investors with a comprehensive outlook on Li Auto’s performance and prospects in the evolving NEV market.
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
Based on the Smartkarma Smart Scores, Li Auto shows a promising long-term outlook. With a high Growth and Resilience score of 5 each, the company seems well-positioned for future expansion and able to withstand market challenges. Additionally, with a Value score of 2, there may be some room for improvement to enhance the company’s intrinsic value. However, the low Dividend score of 1 indicates that Li Auto may not be focused on distributing profits to shareholders at the moment. The Momentum score of 2 suggests some fluctuation in market sentiment. Overall, Li Auto’s high Growth and Resilience scores bode well for its future prospects.
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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