HAITONG INT'L: Maintains "Outperform" rating on LI AUTO-W (02015) with a target price of HK$136.84.

HAITONG INT'L released a research report stating that they are maintaining a "outperform" rating for LI AUTO-W(02015). Considering the company's strong product cycle opening and prominent intelligent attributes, the bank predicts that the company's operating income for 2025/26/27 will be 168.5/223.4/267.1 billion yuan, with a net profit attributable to the parent company of 10.7/14.4/17.8 billion yuan. Referring to comparable companies, the bank gives the company a 1.6 times PS for 2025, corresponding to a target price of 136.84 Hong Kong dollars (converted at a rate of 1 Hong Kong dollar = 0.92 RMB). Key points from HAITONG INT'L: - Ideal Auto released unaudited financial performance for the quarter ending May 31, 2025. - The company delivered 93,000 new cars in 25Q1, a year-on-year increase of 16%, but a quarter-on-quarter decrease of 41%. The company's 25Q1 revenue was 25.9 billion yuan, a year-on-year increase of 1%, but a quarter-on-quarter decline of 41%; net profit attributable to the parent company was 6.5 billion yuan, a year-on-year increase of 9%, but a quarter-on-quarter decrease of 82%. According to the bank's calculations, the average revenue per car for the company in 25Q1 was about 266,000 yuan, a year-on-year decrease of 36,000 yuan, and a quarter-on-quarter decrease of 3,000 yuan; the average net profit per car was about 7,000 yuan, remaining unchanged year-on-year, but decreasing by 1,500 yuan quarter-on-quarter. Looking ahead to 25Q2, the company expects to deliver 123,000-128,000 vehicles, an increase of 13.3%-17.9% year-on-year; and total revenue is expected to reach 32.5-33.8 billion yuan, an increase of 2.5%-6.7% year-on-year. - Improvement in net profit margin, with both vehicle gross margin and cost rates contributing positively. - Optimistic about AI empowerment, focusing on the launch of the pure electric i8 model, which is the first to adopt the VLA model. - Risks include lower-than-expected new car sales and higher-than-expected investment in pure electric vehicle models.