Zhi Tong Cai Jing·2025-11-27 06:16Core Viewpoint - Zhuhai International has downgraded Li Auto-W (02015) from "Buy" to "Hold" due to a lack of catalysts in the coming months, lowering the target price to HKD 70, reflecting a price-to-earnings ratio of 40 and 18 times for 2026-2027 [1] Group 1: Financial Performance - Li Auto's third-quarter performance and operating losses were largely in line with expectations after excluding the one-time Mega recall costs, with a maintained gross margin of approximately 20.4% [1] - The company is projected to achieve sales of 500,000 units in 2026, but gross margin may narrow to 17%, corresponding to a profit of RMB 3.4 billion [1] Group 2: Market Competition - Due to intense market competition for range-extended models, it is anticipated that Li Auto may need to lower prices to boost sales of the new generation L series next year, suggesting that a decline in gross margin over the next two quarters may not be a short-term phenomenon [1]