Jefferies has issued a research report maintaining its "Hold" rating and HK$51.1 target price for Li Auto-W (02015).
The brokerage noted that the company recently held its Power Day electric technology launch event, officially unveiling its new "Lianshan" electric technology system. This was not merely a display of battery specifications, but reflects the company's growing grasp of the power to define electric technology, shifting the differentiation competition for pure electric vehicles from the vehicle as a whole to the complete powertrain system.
Jefferies pointed out that the "Lianshan" system integrates the battery, electric drive, ultra-fast charging hardware, and its own charging network, developed as a unified whole covering 5C charging, voltage, safety, and cycle life. The company also offers lifetime warranty coverage against spontaneous combustion and collision-related fires.
Jefferies believes that although Li Auto continues not to manufacture battery cells itself, it controls the design and data, allowing it to define cell chemistry, materials, electrodes, and battery pack architecture, while obtaining production data from supplier factories.
The brokerage expects that CALB (03931) will join as a partner alongside Sunwoda (300207.SZ).
Jefferies stated that the "Lianshan" system should reduce battery costs in the long run, but in the short term requires annual R&D investment exceeding RMB 200 million. Combined with investments in silicon carbide, electric drive, and charging infrastructure, these costs will need to be amortized through pure electric vehicle sales. The lifetime warranty also means Li Auto will bear more battery responsibility. The brokerage expects gross margins to show more notable improvement only next year.
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