Market Analysis | LI AUTO-W Fell Over 4% in the Afternoon, Stock Price Hits a 1.5-Year Low, JP Morgan Points to Increased Bearish Factors

LI AUTO-W fell more than 4% in the afternoon, hitting a new low since the end of November 2022 at 70.7 Hong Kong dollars. As of the time of publication, it dropped by 3.72% to 71.2 Hong Kong dollars, with a turnover of 319 million Hong Kong dollars. On the news front, in early June, some LI AUTO employees stated that after a month of large-scale layoffs, LI AUTO is recalling some key positions of the laid-off employees. Additionally, following MEGA's underperformance after its listing on March 1st, LI AUTO adjusted its first-quarter and full-year sales targets on March 21st. Third-party statistics show that as of April 30th, MEGA's cumulative sales volume was 4374 units. Among them, the sales volume in April was only 1145 units, far from the monthly average sales target of nearly 6000 units originally planned by LI AUTO. JP Morgan stated that LI AUTO's current stock price reflects the potential for a rise in the next 6-9 months and unfavorable factors such as sales volume and profit margin, giving an initial "Neutral" rating with a target price of 82 Hong Kong dollars. The bank believes that the positive factors for LI AUTO are decreasing while the negative factors are increasing. Given the intense competition in the pure electric vehicle market, LI AUTO recently expanded its product portfolio to pure electric vehicles, bringing challenges. However, it is expected that extended-range electric vehicles + plug-in hybrid vehicles will continue to achieve faster growth