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Li Auto (LI)
NASDAQ:LI
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Li Auto
(NASDAQ:LI)78Outperform
Positive Factors
Financial Performance
Non-GAAP net profit in 3Q24 reached RMB3.8bn, the highest in history, or about RMB0.8bn higher than forecast.
Technological Advancements
Li Auto's NOA test ride in Guangzhou demonstrated its latest ability to navigate more complex traffic scenarios on highways and in cities.
Negative Factors
Sales and Incentives
Li Auto reduced its car purchase incentives for the L-series models, which may affect their sales appeal.
Li Auto (LI) vs. S&P 500 (SPY)
Market Cap
$27.64B
Dividend YieldN/A
Average Volume (3M)6.89M
Price to Earnings (P/E)20.9
Beta (1Y)1.03
Revenue Growth39.75%
EPS Growth57.08%
CountryUS
Employees31,591
SectorConsumer Cyclical
Sector Strength53
IndustryVehicles
Share Statistics
EPS (TTM)1.32
Shares Outstanding883,104,060
10 Day Avg. Volume10,798,799
30 Day Avg. Volume6,885,807
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)N/A
Price to Sales (P/S)5.02
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$31.92Price Target Upside15.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Li Auto Business Overview & Revenue Model
Company DescriptionLi Auto Inc. is a Chinese electric vehicle manufacturer. The company engages in designing, developing, manufacturing, and selling premium smart electric SUVs.
How the Company Makes MoneyLi Auto makes money primarily through the sale of its electric vehicles, particularly its range of smart electric SUVs. The company's revenue model is centered around manufacturing and selling these vehicles, which are equipped with innovative features such as extended-range hybrid technology and advanced driver-assistance systems. Li Auto's key revenue stream is the direct sales of its vehicles to consumers, leveraging its network of retail stores and online platforms. Additionally, the company benefits from government incentives for electric vehicle manufacturers in China, which can help offset production costs and enhance profitability. Strategic partnerships with technology firms and suppliers also play a significant role in Li Auto's operations, enabling the company to integrate cutting-edge technologies and improve its product offerings. However, detailed data on specific partnerships and their financial impact is null.
Li Auto Financial Statement Overview
Summary
Li Auto presents strong financial health across its income statement, balance sheet, and cash flow statement. The company has shown remarkable revenue and profit growth, backed by solid margins and effective cost management. Its balance sheet reflects low leverage and efficient equity utilization, while cash flow generation remains robust. Despite minor increases in debt and a slight decline in free cash flow, the overall financial trajectory is positive and promising.Income Statement
Li Auto has demonstrated impressive revenue growth, with a significant increase in total revenue from 2023 to TTM (Trailing-Twelve-Months). The company has also improved its gross profit margin to 21.47% and net profit margin to 7.16% in the TTM. The EBIT and EBITDA margins have shown strong performance at 4.48% and 5.67% respectively, indicating enhanced operational efficiency. While the net profit margin slightly decreased from the previous year, overall profitability remains robust.90
Very Positive
Balance Sheet
The balance sheet reflects a solid equity position, with a debt-to-equity ratio of 0.24, suggesting low financial leverage. The equity ratio stands at 43.00%, indicating a strong capital structure. ROE is 15.27%, showing effective utilization of equity to generate profits. While the company maintains a healthy cash position, there has been a slight increase in total debt, which is worth monitoring.85
Very Positive
Cash Flow
Li Auto's cash flow statement exhibits strong free cash flow generation, with a free cash flow to net income ratio of 1.84, highlighting effective cash management. The operating cash flow to net income ratio is 2.41, demonstrating strong cash generation from operations. Free cash flow has decreased compared to the previous year, but overall cash flow health remains strong.88
Very Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 141.92B | ― | ― | ― | ― | ― | Gross Profit |
| 30.47B | 27.50B | 8.79B | 5.76B | 1.55B | -95.00K | EBIT |
| 6.35B | 7.14B | -3.65B | -1.02B | -638.96M | -1.84B | EBITDA |
| 8.05B | 12.34B | -839.16M | 500.83M | 199.03M | -2.22B | Net Income Common Stockholders |
| 7.35B | 11.70B | -2.01B | -321.45M | -151.66M | -2.44B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| ― | ― | ― | ― | ― | ― | Total Assets |
| 143.47B | 143.47B | 86.54B | 61.85B | 36.37B | 9.51B | Total Debt |
| 30.58B | 30.58B | 12.26B | 17.22B | 2.11B | 1.71B | Net Debt |
| -72.68B | -72.68B | -46.19B | -32.94B | -26.53B | -1.86B | Total Liabilities |
| 82.89B | 82.89B | 41.35B | 20.78B | 6.57B | 15.19B | Stockholders Equity |
| ― | ― | ― | ― | ― | ― |
| Cash Flow | Free Cash Flow | ||||
| 18.75B | 44.47B | 7.38B | 8.34B | 2.46B | -2.75B | Operating Cash Flow |
| 24.55B | 50.69B | 7.38B | 8.34B | 3.14B | -1.79B | Investing Cash Flow |
| -21.62B | ― | ― | ― | ― | ― | Financing Cash Flow |
| 1.18B | ― | ― | ― | ― | ― |
Li Auto Technical Analysis
Positive
27.67
Price Trends
24.85
Positive
24.65
Positive
22.67
Positive
Market Momentum
1.45
Negative
53.03
Neutral
36.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LI, the sentiment is Positive. The current price of 27.67 is above the 20-day moving average (MA) of 27.00, above the 50-day MA of 24.85, and above the 200-day MA of 22.67, indicating a bullish trend. The MACD of 1.45 indicates Negative momentum. The RSI at 53.03 is Neutral, neither overbought nor oversold. The STOCH value of 36.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LI.
Li Auto Risk Analysis
Li Auto disclosed 108 risk factors in its most recent earnings report. Li Auto reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Li Auto Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $27.64B | 20.88 | 15.27% | ― | 39.75% | 57.08% | |
78 Outperform | $875.02B | 133.46 | 9.73% | ― | 0.95% | -52.81% | |
75 Outperform | $141.11B | 29.53 | 21.81% | 0.77% | 15.65% | 16.40% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
56 Neutral | $19.21B | ― | -28.56% | ― | 63.42% | 54.15% | |
43 Neutral | $8.94B | ― | -186.12% | ― | 13.77% | 17.85% | |
37 Underperform | $6.43B | ― | -70.08% | ― | 35.71% | 8.24% |
* Consumer Cyclical Sector Average
Performance Comparison
LI
Li Auto
27.67
-10.20
-26.93%
TSLA
Tesla
272.04
95.50
54.10%
NIO
Nio
4.22
-1.55
-26.86%
BYDDY
BYD Company
87.22
38.52
79.10%
XPEV
XPeng, Inc. ADR
20.22
10.62
110.63%
LCID
Lucid Group
2.10
-1.09
-34.17%
Li Auto Earnings Call Summary
Earnings Call Date: Oct 31, 2024 | % Change Since: -4.39% | Next Earnings Date: Mar 14, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance by Li Auto in Q3, with record vehicle deliveries and financial results. Significant advancements in autonomous driving and network expansion contribute positively, though there are challenges with cost management and pricing strategies. The conservative guidance for Q4 indicates caution amidst competitive pressures.Highlights
Record Vehicle Deliveries
Li Auto delivered over 152,000 vehicles in Q3, up 45.4% year-over-year, driving segment market share to 17.3% from 14.4% in Q2.
Strong Financial Performance
Total revenues reached a record high of RMB 42.9 billion, up 23.6% year-over-year. Gross margin expanded to 21.5%, and non-GAAP income from operations hit an all-time high of RMB 4.4 billion.
Milestone Achievement
Reached 1 million cumulative vehicle deliveries in just 58 months, the first among emerging NEV brands in China.
Autonomous Driving Advancements
Rapid advancements in autonomous driving, with significant improvements in user experience and competitive technology.
Expanding Sales and Charging Network
479 retail stores and 436 service centers in China, with plans to expand charging stations to over 2,000 by next year.
Positive ESG Performance
Received MSCI's highest AAA ESG rating for the second consecutive year.
Lowlights
Decreased R&D Expenses
R&D expenses decreased by 8.2% year-over-year and 14.6% quarter-over-quarter due to decreased costs for new products and technologies.
Challenges with Cost and Pricing
Vehicle margin relatively stable but slightly decreased due to lower average selling prices and different product mix.
Conservative Q4 Guidance
Q4 vehicle deliveries expected to be between 160,000 and 170,000 units, indicating a conservative growth outlook compared to previous quarters.
Company Guidance
During the Li Auto Q3 2024 earnings call, the company provided guidance for Q4 vehicle deliveries, expecting between 160,000 to 170,000 units, reflecting a year-over-year increase of 21.4% to 29%. For the full year, deliveries are projected to be between 502,000 and 512,000 units. Total revenues for the fourth quarter are anticipated to range from RMB 43.2 billion to RMB 45.9 billion, indicating a year-over-year increase of 3.5% to 10%. The guidance reflects the company's strategic focus on expanding its market share, particularly in the NEV segment priced above RMB 200,000. Additionally, Li Auto plans to expand its supercharging network to over 2,000 stations by the launch of its BEV models, scaling to 4,000 by the end of 2025, to support its long-term growth strategy.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.