Citigroup released a research report stating that LI AUTO INC (02015.HK) (LI.US) has given a weak sales guidance for the fourth quarter, targeting a doubling of sales volume of new energy vehicles (NEV) above 0.2 million RMB. The bank predicts that LI AUTO INC's sales volume compound annual growth rate for 2025-2027 will be 23.5%. However, the off-season effect at the beginning of next year and the failure to achieve the growth target in the new energy vehicle market will lower the annual growth rate for 2025-2027 and force the market to downgrade the PE ratio. The bank has given LI AUTO INC a target price of $29.6 for the American stock, with a "Neutral" rating.
The bank recommends investors to buy BYD COMPANY LIMITED (01211.HK) and CHONGQING SOKON INDUSTRY GROUP STOCK (601127.SH), predicting that LI AUTO INC's PE ratio next year will be 47% and 8% more expensive than BYD COMPANY LIMITED and CHONGQING SOKON INDUSTRY GROUP STOCK, respectively.
