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Li Auto - AI Stock Analysis

Analysis generated December 4, 2024

Li Auto Inc., also known as Li Xiang, is a leading Chinese electric vehicle (EV) startup specializing in the development of smart sport utility vehicles (SUVs). Founded in 2015 and headquartered in Beijing, the company has swiftly risen to prominence within the rapidly growing EV market in China. Li Auto is renowned for its innovative range-extended electric vehicles (EREVs), which combine a traditional internal combustion engine with electric propulsion, providing an effective solution to alleviate range anxiety. The company’s flagship model, the Li One, has garnered a substantial market presence due to its extended range and advanced autonomous driving features.

Fundamental Analysis

Revenue: For the last quarter, Li Auto reported a revenue of CNY 42.9 billion. This represents a 35.34% increase compared to the previous quarter and a 2.74% year-over-year growth. These figures indicate continuous growth and resilience in the face of industry-wide challenges.

Net Income: The net income for the last quarter stood at CNY 2.81 billion, reflecting a substantial rise of 155.24% from the previous quarter. However, when compared to the same quarter last year, there is a decrease of 50.26%, which could raise concerns about the company's long-term profitability trends.

EBITDA: Li Auto's EBITDA for the last quarter was CNY 3.48 billion, marking a 184.65% increase quarter-over-quarter. Year-over-year, this figure shows a marginal decrease of 0.32%, suggesting stability but also pointing to potential areas for efficiency improvements.

P/E Ratio: The current P/E ratio for Li Auto is 17.14. This moderate valuation suggests that the stock is neither undervalued nor overvalued, based on its earnings, making it a relatively balanced investment in terms of growth and value.

Technical Analysis

Stock Price: The stock price of Li Auto is CNY 22.42, showing a 9.05% decline from a month ago. Over the past year, the stock has decreased by 37.09%, which could be a cause for concern among long-term investors.

Trend: Despite the recent price declines, the trend for Li Auto is bullish. The current SMA10 is 22.98, slightly higher than the previous SMA10 of 22.96, suggesting potential upward momentum in the stock price.

RSI: The Relative Strength Index (RSI) stands at 46.6, indicating a neutral condition. This level suggests neither overbought nor oversold conditions, implying that the stock may continue to trend in either direction based on upcoming market catalysts.

Alternative Data Analysis

Job Postings and Employee Sentiment: Li Auto currently has 23 open positions, with this number remaining stable over the past few months. This stability can be interpreted as a sign of the company's solid operational footing. Employee sentiment appears neutral, reflecting neither significant enthusiasm nor discontent.

Customer Acquisition: The estimated monthly visits to Li Auto’s website stand at 1 million. However, this number has declined by 7% over the past few months, which might indicate a potential decline in customer interest and acquisition.

Customer Engagement: On the engagement front, Li Auto’s Instagram followers have increased by 5% to 4,800 in recent months, indicating growing interest in the brand and its offerings.

AI Score: According to AltIndex’s AI score, which amalgamates fundamental, technical, and alternative data, Li Auto scores a 45, signaling a ‘hold’ position for the stock.

Conclusion and Recommendation

Li Auto exhibits a solid growth trajectory with notable increases in revenue and quarterly net income. However, there are concerns regarding the year-over-year decline in net income and EBITDA, indicating areas that might need attention. The technical analysis reflects a neutral RSI with a bullish trend indicated by the SMA10, suggesting cautious optimism. Alternative data present a mixed outlook with stable job postings but declining web traffic, albeit with increasing social media engagement.

In conclusion, given the balanced P/E ratio and AI score recommendation of 45 (hold), it may be advisable for investors to maintain a ‘hold’ position while monitoring the company’s future performance and market conditions. This approach would allow investors to reassess the potential for future growth versus emerging risks, ensuring a well-informed investment decision.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.