Li Auto's 2Q Likely Its Most Challenging Quarter, DB Says -- Market Talk

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Li Auto's 2Q Likely Its Most Challenging Quarter, DB Says -- Market Talk

Dow Jones07-02

0258 GMT - Li Auto's 2Q will likely be its most challenging quarter in terms of gross margins, Deutsche Bank analyst Bin Wang writes in a note. The Chinese automaker's selling prices for its flagship L7, L8, L9 and Mega models are lower after it cut prices in April, which will pressure its margins, he adds. The company also has an unfavorable product mix as the share of its cheaper L6 SUVs rose. Also, the consumers who bought vehicles before the price cuts were compensated. Considering these factors, Li Auto's 2Q margin will likely to drop 1.5 percentage points on quarter to 19.1% while net profit will likely drop 83% on quarter to CNY102 million, the analyst says. DB maintains a buy rating on the stock with a target price of HK$133.00. Shares were last at HK$74.10. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

July 01, 2024 22:58 ET (02:58 GMT)

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CORELONE
·07-02
Also must take into consideration there is cost cutting in Q2 that will improve the net margin
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Considering these factors, Li Auto's 2Q margin will likely to drop 1.5 percentage points on quarter to 19.1% while net profit will likely drop 83% on quarter to CNY102 million, the analyst says. DB maintains a buy rating on the stock with a target price of HK$133.00. Shares were last at HK$74.10. (jiahui.huang@wsj.com; @ivy_jiahuihuang) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  July 01, 2024 22:58 ET (02:58 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Li Auto's 2Q Likely Its Most Challenging Quarter, DB Says -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nLi Auto's 2Q Likely Its Most Challenging Quarter, DB Says -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-02 10:58 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://dowjonesnews.com/newdjn/logon.aspx?AL=N><strong>Dow Jones</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>0258 GMT - Li Auto's 2Q will likely be its most challenging quarter in terms of gross margins, Deutsche Bank analyst Bin Wang writes in a note. The Chinese automaker's selling prices for its flagship ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LI","symbol_name":"理想汽车","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2448737977","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2448737977","pubTimestamp":1719889080,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0258 GMT - Li Auto's 2Q will likely be its most challenging quarter in terms of gross margins, Deutsche Bank analyst Bin Wang writes in a note. 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The Chinese automaker's selling prices for its flagship L7, L8, L9 and Mega models are lower after it cut prices in April, which will pressure its margins, he adds. The company also has an unfavorable product mix as the share of its cheaper L6 SUVs rose. Also, the consumers who bought vehicles before the price cuts were compensated. Considering these factors, Li Auto's 2Q margin will likely to drop 1.5 percentage points on quarter to 19.1% while net profit will likely drop 83% on quarter to CNY102 million, the analyst says. DB maintains a buy rating on the stock with a target price of HK$133.00. Shares were last at HK$74.10. ","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0258 GMT - Li Auto's 2Q will likely be its most challenging quarter in terms of gross margins, Deutsche Bank analyst Bin Wang writes in a note. The Chinese automaker's selling prices for its flagship L7, L8, L9 and Mega models are lower after it cut prices in April, which will pressure its margins, he adds. The company also has an unfavorable product mix as the share of its cheaper L6 SUVs rose. Also, the consumers who bought vehicles before the price cuts were compensated. Considering these factors, Li Auto's 2Q margin will likely to drop 1.5 percentage points on quarter to 19.1% while net profit will likely drop 83% on quarter to CNY102 million, the analyst says. DB maintains a buy rating on the stock with a target price of HK$133.00. Shares were last at HK$74.10. (jiahui.huang@wsj.com; @ivy_jiahuihuang) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  July 01, 2024 22:58 ET (02:58 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Li Auto's 2Q Likely Its Most Challenging Quarter, DB Says -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nLi Auto's 2Q Likely Its Most Challenging Quarter, DB Says -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-07-02 10:58</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0258 GMT - Li Auto's 2Q will likely be its most challenging quarter in terms of gross margins, Deutsche Bank analyst Bin Wang writes in a note. The Chinese automaker's selling prices for its flagship L7, L8, L9 and Mega models are lower after it cut prices in April, which will pressure its margins, he adds. The company also has an unfavorable product mix as the share of its cheaper L6 SUVs rose. Also, the consumers who bought vehicles before the price cuts were compensated. Considering these factors, Li Auto's 2Q margin will likely to drop 1.5 percentage points on quarter to 19.1% while net profit will likely drop 83% on quarter to CNY102 million, the analyst says. DB maintains a buy rating on the stock with a target price of HK$133.00. Shares were last at HK$74.10. (jiahui.huang@wsj.com; @ivy_jiahuihuang) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  July 01, 2024 22:58 ET (02:58 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LI":"理想汽车","BK4585":"ETF&股票定投概念","BK4555":"新能源车","BK4526":"热门中概股","BK4588":"碎股","DB":"德意志银行","EVS.SI":"MSCI China Electric Vehicles and Future Mobility ETF-NikkoAM","BK4552":"Archegos爆仓风波概念","BK4566":"资本集团","BK4118":"综合性资本市场","BK4548":"巴美列捷福持仓","BK4503":"景林资产持仓","BK4099":"汽车制造商","BK4551":"寇图资本持仓","BK4563":"昨日强势股"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2448737977","content_text":"0258 GMT - Li Auto's 2Q will likely be its most challenging quarter in terms of gross margins, Deutsche Bank analyst Bin Wang writes in a note. The Chinese automaker's selling prices for its flagship L7, L8, L9 and Mega models are lower after it cut prices in April, which will pressure its margins, he adds. The company also has an unfavorable product mix as the share of its cheaper L6 SUVs rose. Also, the consumers who bought vehicles before the price cuts were compensated. Considering these factors, Li Auto's 2Q margin will likely to drop 1.5 percentage points on quarter to 19.1% while net profit will likely drop 83% on quarter to CNY102 million, the analyst says. DB maintains a buy rating on the stock with a target price of HK$133.00. Shares were last at HK$74.10. (jiahui.huang@wsj.com; @ivy_jiahuihuang) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  July 01, 2024 22:58 ET (02:58 GMT)\n\n\n  Copyright (c) 2024 Dow Jones & Company, Inc.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":0,"commentSize":1,"repostSize":1,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}