China Specialist, Auto and Industrial Specialist

Victoria Li

20 years experience as sell side analyst focusing on China's Industrial and Auto sectors

Li Auto (LI.US):Getting into the Right Lane

China Auto: Outstanding Xpeng in Dark Moment

Equity Bottom-Up

<ul>
<li>First quarterly profit in 4Q'22 (first amongst the 3 main emerging brands) has raised expectations of full year profitability in '2023</li>
<li>Launch of BEV will increase production, R&amp;D, platform depreciation and marketing costs</li>
<li>Despite our expection of revenues doubling y/y in '23, profitability may not increase accordingly</li>
</ul>


First quarterly profit in 4Q'22 (first amongst the 3 main emerging brands) has raised expectations of full year profitability in '2023
Launch of BEV will increase production, R&amp;D, platform depreciation and marketing costs
Despite our expection of revenues doubling y/y in '23, profitability may not increase accordingly


Li Auto: First Quarterly Profit, Route to Sustained Annual Profits Will Be Harder