According to the research report released by Citi, due to the slowdown in the sales of BEV models and unfavorable supply-demand relationships, the gross margin forecast for LI AUTO-W(02015) in 2025 and 2026 has been lowered by 0.1 and 0.8 percentage points to 18.8% and 17.9% respectively. The target price has been reduced from HKD 113.8 to HKD 100.7, and there is a valuation downside risk in 2025.

The report states that LI AUTO's net income in the second quarter was 1.1 billion RMB, an increase of 86% compared to the previous quarter, outperforming the market expectations. The overall gross margin was 19.5%, a decrease of 1.1 percentage points compared to the previous quarter, and the gross margin for complete vehicles was 18.7%, a decrease of 0.6 percentage points compared to the previous quarter. Citi predicts that the sales volume of LI AUTO in the third and fourth quarters will be 0.155 million and 166,000 vehicles respectively, and the gross margin for complete vehicles will continue to rebound to 19.3% and 19.9%, with an overall gross margin of 19.9% and 20.5%, and net income of 2.63 billion yuan and 2.83 billion yuan.