HSBC raised Li Auto’s H-share target price to HK$213 from HK$169, with Buy rating

 

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

 

 

Chinese electric vehicle maker Li Auto’s CEO Li Xiang has said the company will increase its weekly production capacity from 7,500 units in June to 8,000 units starting the second week of July, faster than the expectation of HSBC Global Research, the broker said in a note. 

Production capacity at Li Auto’s Changzhou and Beijing plants is expected to increase in the second half of 2023, bringing the total monthly sales to nearly 40,000 units by the end of the year, it said. 

Looking ahead to next year, Li Auto’s product cycle is expected to accelerate, with 7 new models to be launched by then, it said.

HSBC raised the forecast of Li Auto’s net profit in FY2023 – FY2025 by 18%, 14% and 13%, respectively, taking into account strong order backlog, an expedited product cycle and production capacity increasing faster than expectation. It also raised its revenue forecasts by 6%, 3% and 2%, beating market consensus by 13%, 15% and 10%, respectively.