Li Auto Stock Falls Despite Robust Q2. What’s Next?
Li Auto reported strong second-quarter results yesterday, but shares fell sharply. Deutsche Bank analyst Edison Yu's team shared their thoughts on this.
"With expectations already quite elevated going into earnings, we are not overly surprised by the negative market reaction and continue to believe the stock is embedding a very positive trajectory, creating room to disappoint," the team said in an August 8 research note sent to investors.
According to Forbes, Li currently trades at just about $43 per share, just slightly off all-time highs seen recently. In relative terms, the stock presently trades at almost 3x estimated 2023 revenues. Although this is ahead of Chinese rival Nio, it is below the likes of Tesla and Xpeng.
Quote:
The company reported record revenue of RMB 28.65 billion ($3.95 billion) in the second quarter. This represents a year-on-year increase of 228.18 percent and a 52.47 percent increase from the first quarter.
Li Auto's second-quarter net income was RMB 2.31 billion, compared with a net loss of RMB 641 million in the second quarter of 202, an increase of 147.4 percent from the first-quarter net income of RMB 933.8 million.
Li Auto's gross margin was 21.8 percent in the second quarter, compared to 21.5 percent in the second quarter of 2022 and 20.4 percent in the first quarter.
Source:
$BYD COMPANY(01211.HK$ $BYD Co.(BYDDF.US$ $S&P 500 Index(.SPX.US$ $Nasdaq Composite Index(.IXIC.US$ $Tesla(TSLA.US$ $VOLKSWAGEN A G(VWAGY.US$ $NIO Inc(NIO.US$ $Li Auto(LI.US$ $XPeng(XPEV.US$ $General Motors(GM.US$ $Ford Motor(F.US$ $Rivian Automotive(RIVN.US$ $MERCEDES-BENZ GROUP AG(MBGAF.US$ $TOYOTA MOTOR CORP(TOYOF.US$ $GEELY AUTO(00175.HK$ $Lucid Group(LCID.US$ $Stellantis NV(STLA.US$
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
2405Followers
87Following
10KVisitors
Follow
ZnWCOP : Based on CNEVPost, Li Auto currently has three models on sale -- the Li L7, Li L8, and Li L9 -- all of which are extended-range electric vehicles (EREVs). EREVs are vehicles in which propulsion power is provided almost entirely by an electric unit. They are additionally equipped with a small internal combustion engine to generate additional energy. Hence they are still considered hybrid vehicles, not pure EV. Li Auto will start producing BEV or pure EV in year 2025.