Li Auto's Profitability Likely to Stay Under Pressure
Dow Jones08-28 12:13
0413 GMT - Li Auto's profitability will likely stay under pressure, says Morningstar analyst Vincent Sun in a note. The company's second-quarter vehicle margin missed analysts' expectations, because costs rose as it refreshed models, Sun says. The management guides for profitability recovery in the second half as product mix improves, with vehicle margin expected to return to the midteens in the fourth quarter, he adds. The company plans to launch the new i9 battery SUV next month and refresh two existing battery models in the second half, he says. However, meaningful volume recovery will only come next year, when refreshed models contribute for a full year, he says.
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