Hong Kong Stock Market Update | LI AUTO falls nearly 7%, hitting an 8-month low. Sales trend weakens as it is overtaken by competitors for two consecutive weeks.

Zhitong App learned that Li Auto (02015) fell nearly 7%, hitting a new low of HKD 102.6 since May last year. As of the time of writing, it has dropped 6.72% to HKD 102.8, with a turnover of HKD 587 million.

On the news front, on January 16th, Li Auto released the weekly sales ranking of new energy vehicle brands for the second week of 2024 (January 8th to January 14th). Wanjie, with sales of 6,800 vehicles, topped the list, while Li Auto came in second with 6,800 vehicles, almost catching up. This is the second time that Li Auto has been surpassed by Wanjie. In the weekly sales ranking of new energy vehicle brands for the first week of 2024, AITO Wanjie series sold 5,900 vehicles, surpassing Li Auto (4,300 vehicles) for the first time and winning the title of the top-selling new force in the weekly sales ranking. The cumulative sales of Wanjie and Li Auto in the first two weeks of 2024 were 12,700 vehicles and 11,100 vehicles, respectively, with a difference of about 1,800 vehicles.

Dahua Jixian pointed out that since the beginning of this year, Li Auto's sales trend has started to weaken, mainly due to the slowdown in the market and intensified competition. Its products have been discounted by 8% to 10%, and it is believed that further price reductions will be made. The net profit forecast for the three-year period from 2023 to 2025 has been lowered by 12%, 35%, and 55% respectively. The target price has been reduced from HKD 190 to HKD 100, and the rating has been downgraded from "buy" to "sell". In response to Li Auto's weak sales and market competition, the bank has lowered its delivery volume forecast for this year and next year by 14% and 33% respectively, to 500,000 vehicles and 650,000 vehicles. The company's target of delivering 800,000 vehicles this year is believed to be difficult to achieve.