Citi lowers Li Auto's sales forecast for the next two years, target price adjusted to 71.1 yuan

Citigroup published a research report, adjusting its sales volume forecast for Li Auto-W (02015.HK) down by 9% to 10% for this year and next year to 455,000 and 503,000 vehicles, respectively, due to factors such as lower-than-expected order volume in January, aging issues with the L series models, intensified competition from peers, and expanded retail discounts. The gross margin forecast was also lowered by 0.4 to 0.5 percentage points to 17.7% and 17.5%, and the net profit forecast was reduced by 16% to 18% to RMB 2.85 billion and RMB 3.5 billion, respectively.

Accordingly, Citigroup lowered its target price for H shares from HKD 77.7 to HKD 71.1, and the target price for Li Auto (LI.US) in the US stock market was also reduced from USD 20.2 to USD 18.5, reflecting recent pressure on profit margins and intense market competition, maintaining a "Neutral" rating