Li Auto 3Q25 Quick Interpretation: Dolphin Research's first glance at Li Auto's financial report can only be described as 'unbearable to look at,' with a significant drop in gross margin and net profit turning from a gain to a loss.However, upon closer examination, it was found that the main culprit behind Li Auto's 'unbearable' quarterly financial report was the Mega recall event, which had a negative impact on the cost side, amounting to nearly 1.11 billion yuan. After accounting for the impact of this one-time event, Li Auto's 'real' gross profit for the third quarter was 5.58 billion yuan, with an overall gross margin of 20.4%. Both overall revenue and gross margin slightly exceeded market expectations. Therefore, excluding the impact of the Mega recall, the overall performance of the third-quarter financial report slightly exceeded market expectations.Specifically:Third-quarter vehicle sales revenue was 25.87 billion yuan, exceeding the expected 25 billion yuan. This was mainly due to the high prices of the i8 and Mega pure electric models, which raised the average selling price to 277,000 yuan, surpassing the market expectation of 266,000 yuan.Excluding the negative impact of the Mega recall on the cost side, the vehicle sales gross margin for this quarter was 19.8%, up about 0.4 percentage points from 19.4% in the previous quarter. This performance was still acceptable, mainly due to the increase in the average selling price of vehicles, which offset the negative impact of the increase in per-vehicle amortized costs due to a quarter-on-quarter decline in sales volume.Finally, driven by the quarter-on-quarter increase in the 'real' gross margin, although R&D expenses continued to increase, the 'real' net profit after excluding the impact of the Mega recall was 490 million yuan, slightly exceeding the market expectation of 320 million yuan.However, Dolphin Research needs to remind that compared to the third-quarter performance itself, the market will be more concerned about the fourth-quarter guidance, and Li Auto's fourth-quarter guidance does not meet expectations.According to the guidance, fourth-quarter sales guidance is only 100,000-110,000 units. Given that October sales were 32,000 units, the implied average monthly sales for November/December are only 34,000-39,000 units, significantly lower than the market expectation of 138,000 units. This indicates that the ramp-up speed of the i6, a popular model, is below expectations. More importantly, it implies that the sales of the L series extended-range models will decline significantly quarter-on-quarter compared to the third quarter, especially as Li Auto continues to increase discounts on the L series. The 'internal and external troubles' of the L series are more severe than expected.With the i6 launching at a low price and the L series increasing discounts but still experiencing a significant quarter-on-quarter decline in sales, Li Auto's fourth-quarter vehicle sales gross margin is expected to remain under significant pressure. The specific outcome will depend on the guidance from the management. $Li Auto(LI.US) $LI AUTO-W(02015.HK)

15:40 ET Building Performance Association Applauds House Subcommittee For Unanimously Advancing Bipartisan Weatherization Reauthorization Legislation

The House Energy & Commerce Committee Subcommittee on Energy advanced the bipartisan Weatherization Enhancement & Readiness Act (H.R. 1355), reauthorizing the Weatherization Assistance Program (WAP) through 2030. The bill increases the Average Cost Per Unit to $12,000 and supports local contractor jobs. BPA CEO Steve Skodak and other leaders expressed support for the legislation. However, other bills targeting key efficiency programs were also advanced, which BPA opposes. BPA will continue advocating for energy efficiency programs.

Applovin 3Q25 Quick Interpretation: Overall, it was a slightly better-than-expected strong growth, and the post-market reaction aligned with the extent of the surprise.Before the earnings report, aside from the SEC's scrutiny risk, there were actually some disputes in the market regarding the actual effectiveness of the self-service platform. Some funds believed that merchant feedback was not as optimistic as expected (the number of merchant brands did not significantly increase, and the click-through rate of the Axon webpage did not show a noticeable spike), leading to a wave of valuation adjustments.Dolphin Research believes that the current self-service platform is not fully launched and is in a specific range of invitation testing. Therefore, the Q4 guidance cannot fully reflect the true effect of the self-service platform. Attention can be paid to the management's related discussions and specific customer adoption disclosures during the conference call.1. Revenue growth naturally slowed: Third-quarter revenue was $1.405 billion, up 17% year-on-year. If only looking at advertising, the actual growth rate was 68%, which slowed compared to the previous quarter. Fourth-quarter revenue guidance is $1.57-1.6 billion, calculated at the upper end of the range, up 60% year-on-year, continuing to slow slightly.2. Profit margin continues to optimize: In the third quarter, due to cost control, the adjusted EBITDA profit margin increased by 1.5 percentage points, reaching 82%. This is evidently an extreme state, with the combined rate of the three expenses only at 10%.This is the current profit level that Applovin has as a pure advertising intermediary platform. With subsequent cost recognition of the new platform and investment in new market expansion, the space for further improvement is relatively small. $AppLovin(APP.US)

Meli: Profit miss? It might just be the 'growing pains' before victory.

The Latin American version of "Alibaba"—$Mercadolibre(MELI.US) (hereinafter referred to as Meli) released its financial report for the third quarter of 2025 on October 30. Overall, the revenue side performed well, with accelerated growth quarter-on-quarter and slightly exceeding expectations. Conversely, due to increased logistics subsidies within the e-commerce segment and a decline in financial business due to structural factors and interest rates, profit margins fell short of sell-side expectations. 1. Growth outperformed but profits underperformed: In terms of overall performance, Meli's total revenue (denominated in USD) grew approximately 39.5% year-on-year, with a significant acceleration from the previous quarter...

Peel Hunt Remains a Buy on Costain (COST)

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Costain with a p162.50 average price target.