CICC: Maintains Li Auto-W outperform rating with a target price of HKD 108

According to the Zhitong Finance APP, China International Capital Corporation (CICC) has released a research report stating that it maintains an outperform rating for Li Auto-W (02015). The Hong Kong and US stocks correspond to 36/26x 25E and 17/14x 26E P/E, respectively, maintaining the profit forecast for 2025/26, with target prices of HKD 108/USD 28 for Hong Kong and US stocks, corresponding to 38/28x 25E and 18/15x 26E P/E, indicating an upside potential of 8%/8%. On September 26, the company held a launch event for the Li Auto i6, achieving immediate delivery upon release.

CICC's main points are as follows:

The Li Auto i6 officially launched, returning to the big product strategy

The i6 returns to the big product strategy, launching only one model priced at RMB 249,800, achieving the same starting price as the extended-range L6. The i6's initial sales incentives are solid, including a cash discount of RMB 10,000 and standard air suspension, further lowering the actual price. The i6 is positioned as a five-seat mid-to-large SUV, equipped with a 5C lithium iron phosphate battery, with a maximum range of 720 km, and supports 500 kW ultra-fast charging. Combined with the layout of over 3,300 ultra-fast charging stations, the firm expects it to effectively alleviate users' range anxiety. In terms of intelligence, the i6 is equipped with laser radar and Thor chips, combined with AD Max and VLA architecture, enhancing the high-level intelligent driving experience. The interior emphasizes family attributes such as the "Queen Seat" and "Small Living Room," increasing its appeal to family users. The firm believes the i6 is likely to become an important driver of the company's sales growth.

Self-developed chips accelerate advancement, intelligent advantages gradually emerge

In terms of intelligence, the company has recently made significant progress: 1) The self-developed intelligent driving chip has officially completed sample returns and is entering a critical stage before mass production. Currently, the M100 chip is undergoing small-scale road testing, aiming to achieve a better balance of performance and energy efficiency. 2) The company's intelligent driving base model adopts an end-to-end + VLA architecture, insisting on self-development and continuously enhancing its computing power and user experience in the field of intelligent driving. Looking ahead, the firm is optimistic about the company's forward-looking AI layout and its capabilities in the broader AI field.

Continuously expanding channel construction, clear leading advantage in 2026

Recently, the company has actively adjusted its channels, including optimizing the store mix in first, second, and third-tier cities, relocating inefficient stores, balancing the ratio of mall stores (high customer acquisition) to central stores (high conversion), and planning to expand into fourth and fifth-tier cities through a lightweight "Star Store" model to shorten the store opening cycle and reduce investment. In addition, regarding how to extend the product lifecycle, the company's management stated at the 2Q25 earnings conference that it will continue to optimize product SKUs and configuration strategies, enhance iteration frequency, and ensure faster release frequency. The company is confident that its vehicle product strength and systematic AI capabilities in 2026 will exceed the industry-leading level of the 2022 Li Auto L9 era.

Risk Warning: Pure electric models may underperform; intelligent driving may underperform; market competition may intensify