Li Auto

Edison Yu's team lowered their price target on Li Auto by $6 to $28, based on 3.0x 2023E EV/Sales, down from 3.5x previously.

Some of Li Auto's suppliers have completely shut down production, making it impossible to maintain production after existing parts inventories have been absorbed, it said.

Li Auto delivered 31,716 vehicles in the first quarter, which is near the upper end of the guidance range of 30,000-32,000 vehicles.

The mainland-Hong Kong stock connect includes two channels, Shenzhen and Shanghai, and Li Auto's shares traded in Hong Kong were included in the Shenzhen channel last month.

Li Auto said that inclusion on the list is not equivalent to delisting from the US and that it will not have any impact on the company's actual business operations.

The 17 companies are the fifth to be added to the list, and they have until May 12 to provide evidence to the SEC that they are not eligible for delisting.

Li Auto said it is actively working with supply chain companies to restore capacity in an effort to keep delivery delays to less than three weeks.

The first phase of the range extender production project is planned to have a capacity of 200,000 units, and 388 prototypes have already been delivered to Li Auto.

With the upcoming launch of the new SUV L9, Li Auto and its supply chain are expected to be the "dark horse" of the year, a team of local analysts previously said.

Li Auto said the L9 could be a mobile gaming space for the home, allowing the Switch console to easily connect to the car's screens.