BofA Securities: LI AUTO-W (02015) Introducing External Capital into Chip Business Helps Expand Non-Automotive Business

BofA Securities issued a research report maintaining a "Neutral" rating on LI AUTO-W (02015) and an H-share target price of HK$58.9. The bank noted that Li Auto recently announced that its subsidiary MHX Technology, which focuses on chip and domain controller businesses, will conduct 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 status as controlling shareholder and continuing to consolidate MHX Technology in 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 employee incentive entities will be 74.01%, 6.58% and 19.41%, respectively. The bank noted that Li Auto launched its self-developed Mach M100 AI chip in June 2026, using a 5nm automotive-grade process with single-chip computing power of 1,280 TOPS, and it has been deployed in multiple vehicle models. The M100 is designed for artificial general 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 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 sustainable economic benefits.