Home » Macquarie: Outperform rating on Li Auto-W (02015) with a target price of HK$151 ($19.4)

Macquarie: Outperform rating on Li Auto-W (02015) with a target price of HK$151 ($19.4)

by SEP Editor
5 mins read

(Photo Credit: Li Auto)

According to Macquarie’s research report, Li Auto-W(02015) is expected to grow at a CAGR of 62.6% in sales and 56.6% in revenue over 2021-24 due to the combination of strong sales, promising planned product launches and low policy risk.

According to the report,Li Auto’s share of luxury electric vehicles will reach 20.4% in FY2022, giving it a target price of HK$151($19.4) based on a forecast P/S ratio of 5.1x in 2022.

Li Auto is focused on the affordable luxury car market and has already launched its SUV, the Li One, which has achieved excellent market feedback, the report said.

It is expected to replicate the success of Li One with the future launch of its flagship new model, the SUVX01.

Macquarie said that with Li ONE, Li Auto has performed well in the core market of affordable luxury new energy vehicles (high-end cities) and the company is also better positioned than its peers in lower tier cities.

It is believed that Li Auto’s strategy of expanding its own sales channel and offering an extended electric vehicle (EREV) model will pave the way for the company’s growth in lower tier cities.

Li Auto delivered more than 14,000 vehicles in 2021

Data from Li Auto shows that the company delivered 14,087 units of Li ONE in December 2021, (up 130.0% year-over-year), setting another new delivery record, surpassing November’s 602 units.

A slight increase of 4.3% from the previous month, surpassing NIO’s December delivery (10,489 units) and second only to Xpeng (16,000 units).

In the fourth quarter, Li ONE delivered a total of 35,221 vehicles, ahead of NIO at 25,034 and behind of Xpeng at 41,751 units.The fourth quarter up 40.2% from the third quarter of 2021 and up 143.5% from the fourth quarter of 2020.

(Photo Credit: Li Auto)

What does this mean for Li Auto Inc?

Li’s impressive growth figures suggest that the electric vehicle market in China is only expanding – information that should inspire increased investor confidence in the company.

Yanan Shen, co-founder, and president of Li Auto commented, “We set another record with more than 14,000 deliveries in December. We would like to express our heartfelt gratitude to our family users for their trust and support.”

“In December, we released the OTA 3.0 update to all our Li ONE users, further enhancing their in-car experience.”

The OTA update includes the company’s first full-stack, self-developed Navigation on ADAS (NOA), which allows for safer driving for over 60,000 Li One users.

As of the end of 2021, Li Auto had 206 retail stores in 102 cities, as well as 278 servicing centers and Li Auto-authorized body and paint shops operating in 204 cities.

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