Li Auto's Strong Recovery and Margins Boost Investor Sentiment

Recent reports indicate that Li Auto's stock is on a recovery trajectory fueled by government stimulus measures, robust delivery growth, and impressive profit margins. Analysts view the stock as a valuable opportunity despite its earlier struggles in 2024.

Date: 29-09-2024

AI Rating: 7

Earnings Per Share (EPS)

The report does not specifically mention Earnings Per Share (EPS) data, making it impossible to analyze this metric at this time.

Revenue Growth

Li Auto's deliveries have seen a notable increase, with 288,103 vehicles delivered so far this year, which represents a growth of nearly 40% compared to 2023. The company has guided for Q3 deliveries between 145,000 and 155,000, indicating potential revenue growth of 38% to 47.5% compared to the previous quarter.

Net Income

Net Income information is not provided in the report; hence, an analysis cannot be made.

Profit Margins

Li Auto reported an impressive vehicle margin of 18.7% in Q2, significantly outperforming competitors like NIO and XPeng. This indicates the company's strong profitability in the competitive NEV market. The margins being higher than that of its peers reveals a solid position for Li Auto, suggesting that it can absorb potential market pressures better than its competitors.

Free Cash Flow (FCF)

The analysis does not provide specific information about Free Cash Flow (FCF), thus, it cannot be evaluated.

Return on Equity (ROE)

The report does not include any data regarding Return on Equity (ROE), so this aspect remains unexamined.

Rating Based on Analysis

Based on the strong delivery growth and the robust profit margins, the rating for Li Auto would be a 7, as it slightly exceeds expectations. The overall market conditions, including the potential positive influence of government stimulus, lend additional optimism.

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