＜Research＞UBS Lowers Li Auto (LI.US) TP to US$30, Rates Buy

　　UBS highlighted in a report that Li Auto's (LI.US) US share price has crumpled 45% since March this year, which is believed to be due to investors' disappointment with the LI MEGA model, delayed launch of new battery-electric models, and increased competition in the market.

　　While the company's battery-electric vehicle strategy is taking time to realise, UBS remained positive on Li Auto's flexibility in extended-range electric vehicle product delivery, and expected investors to gradually focus on next year's growth prospects.

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　　Looking forward to positive operating profit in the current quarter, UBS reiterated its Buy rating on Li Auto and considered its risk-return profile attractive. The broker lowered its US target price from US$33 to US$30, corresponding to a 1x 2025 P/S ratio and implied a 9x 2025 P/E ratio excluding cash.

　　In response to intensified competition in the market, weaker-than-expected sales of MEGA and delayed launch of battery-electric models, UBS dropped Li Auto's sales forecasts for this year and next year by 17% and 6% to 500,000 and 850,000 respectively, and reduced its earnings forecasts for 2024/25/26 by 40%, 28% and 18% respectively.

　　(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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