Goldman Sachs downgrades Li Auto to "neutral" and lowers target price to HK$74.

Goldman Sachs released a research report stating that the fourth quarter performance of LI AUTO-W (02015) in 2025 met expectations, however, the sales and gross profit margin guidance for the first quarter and full year of 2026 were below expectations. Goldman Sachs lowered the target price for Li Auto from 93 Hong Kong dollars to 74 Hong Kong dollars, and the rating was downgraded from "buy" to "neutral". The bank expects Li Auto to suffer consecutive quarters of pure profit loss expansion, weak sales growth, and pressure on vehicle gross margins, mainly due to the lack of new models introduced, rising raw material and memory costs, and an increase in the proportion of low-margin models. After Li Auto announced its fourth quarter performance in 2025, the bank lowered its forecasts for 2026 to 2028, with a 5% to 22% decrease in sales forecasts, based on management's lower than expected sales guidance for 2026, and a slower pace of introduction for restyled models; Gross profit margin forecasts were lowered by 0.4 to 1.0 percentage points, based on lower than expected guidance for the first quarter and full year of 2026, as well as decreased sales and revenue; therefore, net profit forecasts were lowered by 21% to 34%.