Li Auto Earnings Preview: Performance Under Pressure, When Will the Stock Stop Falling?
Li Auto is set to release its second-quarter earnings report after the Hong Kong market closes this Wednesday. Analysts expect Q2 revenue to reach RMB 24.962 billion, down 3.7% year over year, with adjusted EPS estimated at RMB -0.562.
In terms of stock performance, Li Auto has been trending downward with volatility this year. After a sharp decline in May, the stock has continued to trade in a volatile range, with shares down about 23% year to date.
As for revenue structure, Li Auto has two major business segments: Vehicle Sales and Other Sales & Services, with vehicle sales remaining its primary revenue contributor. However, growth in the vehicle business remains under pressure. Li Auto delivered a cumulative 61,363 vehicles in June and July, down 8.4% year over year.
Analysts expect second-quarter vehicle deliveries to reach approximately 98,211 units, down 11.58% year over year, while Q2 vehicle sales revenue is expected to decline 18.94% year over year.
The market will focus on whether deliveries, revenue, and profitability meet expectations, as well as management’s guidance for vehicle deliveries in the next quarter.
According to analysts, the declining sales and profit margins continue to weigh on Li Auto’s vehicle business. Although the company’s second-quarter loss may narrow sequentially, rising costs, investments in AI, and intensifying competition are still putting pressure on its financial performance.
From a valuation perspective, Li Auto’s price-to-sales ratio stands at 0.84, near its lowest level over the past five years. $LI AUTO-W(02015)$ $Li Auto(LI)$
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- wavyix·15:22It may stop falling soon; sequential loss narrowing plus a 0.84 PS ratio near five-year lows feels way too ignored.LikeReport
- Investing Leon·20:56The decline in Li Auto’s sales this time has had a significant impact.LikeReport