BofA Securities has issued a research report maintaining its "Neutral" rating on Li Auto-W (02015) and its H-share target price of HK$58.9.
The bank noted that Li Auto recently announced that its subsidiary MHX Technology, which focuses on chips and domain controller businesses, will carry out a RMB 1.625 billion equity financing, bringing in external investors including Hangzhou Jingtao, Lanchi Ventures, Huaye Tiancheng and MiraclePlus.
Li Auto will invest RMB 1 billion through a wholly-owned subsidiary, maintaining its position as controlling shareholder and continuing to consolidate MHX Technology into its financial statements.
Assuming the employee incentive plan is fully utilized and additional subscription rights are exercised, the shareholding ratios of Li Auto, external investors and the employee incentive entity will be 74.01%, 6.58% and 19.41%, respectively.
The bank noted that Li Auto launched its self-developed Mach M100 artificial intelligence chip in June 2026, using a 5-nanometer automotive-grade process with single-chip computing power of 1,280 TOPS, and it has already been deployed in multiple models.
The M100 is aimed at general artificial intelligence inference and can support autonomous driving, large language models and intelligent human-machine interaction.
BofA Securities believes that MHX Technology provides a unique platform for Li Auto's chip and domain controller businesses, helping to expand opportunities in non-automotive fields, and expects it to scale up its business through external commercialization.
The bank will continue to monitor its R&D and commercialization progress, expansion into non-automotive applications, and whether scale can translate into sustainable economic benefits.
Comments