Understanding the Market | Li Auto-W fell over 3% with September sales down 36.8% year-on-year; institutions expect pressure on its sales and product pricing

Li Auto-W fell over 3%, down 3.48% to HKD 98.45 as of the time of publication, with a trading volume of HKD 471 million. On the news front, on October 1st, Li Auto announced its delivery data for September. Li Auto delivered 33,951 vehicles in September, a year-on-year decrease of 36.8%, marking a consecutive four-month decline. HSBC Research released a report stating that Li Auto launched the new mid-to-large five-seat pure electric SUV, Li Auto i6, at the end of last month, which performed strongly after its launch and is expected to drive a significant rebound in the company's sales in the fourth quarter. HSBC Research maintained a "Buy" rating on Li Auto, but considering the pressure on sales and pricing of the EREV lineup, it lowered its sales forecasts for 2025 to 2027 by 22% to 31%, and correspondingly reduced its earnings forecasts by 55%, 42%, and 31%. The target price for Hong Kong stocks was lowered from HKD 142 to HKD 118, and the target price for U.S. stocks was reduced from USD 36.5 to USD 30.3