LI AUTO(02015) 国投证券·2024-11-01 02:30Investment Rating - The investment rating for the company is maintained as "Buy-A" with a target price of HKD 142.58 [6]. Core Insights - The company reported strong Q3 2024 results with revenue of CNY 42.9 billion, exceeding previous guidance, representing a year-on-year increase of 24% and a quarter-on-quarter increase of 35%. Net profit reached CNY 2.8 billion, a slight year-on-year increase of 0.3% and a significant quarter-on-quarter increase of 156% [1][2]. - The automotive business generated revenue of CNY 41.3 billion in Q3 2024, up 23% year-on-year and 36% quarter-on-quarter, with a delivery volume of 153,000 vehicles, marking a 45% year-on-year increase and a 41% quarter-on-quarter increase [1][2]. - The company has a robust cash reserve of CNY 106.5 billion as of the end of Q3 2024, with a significant improvement in cash flow, reporting a net cash flow from operating activities of CNY 11 billion, up CNY 11.4 billion from the previous quarter [4]. Summary by Sections Financial Performance - Q3 2024 operating profit reached CNY 3.4 billion, a 47% year-on-year increase and a 634% quarter-on-quarter increase, marking a historical high. The profit per vehicle was CNY 18,000, showing a year-on-year decrease of CNY 800 and a quarter-on-quarter increase of CNY 800 [3]. - The automotive business gross margin was 20.9%, down 0.3 percentage points year-on-year but up 2.2 percentage points quarter-on-quarter, attributed to increased sales volume and a higher proportion of the AD MAX version [2]. Research and Development - R&D expenses for Q3 2024 were CNY 2.6 billion, down 8.2% year-on-year and 14.6% quarter-on-quarter, with an R&D expense ratio of 6.0%, a decrease of 3.5 percentage points quarter-on-quarter [2]. Sales and Management Expenses - Sales, general, and administrative expenses totaled CNY 3.4 billion, up 32% year-on-year and 19% quarter-on-quarter, with a sales expense ratio of 7.8%, down 1.1 percentage points quarter-on-quarter [2]. Future Outlook - For Q4 2024, the company expects to deliver between 160,000 to 170,000 vehicles, generating revenue of CNY 43.2 billion to CNY 45.9 billion. The total expected deliveries for the year are between 502,000 to 512,000 vehicles, with total revenue projected at CNY 143.4 billion to CNY 146.1 billion [5][8].