China Merchants Securities International: Maintains iQOO Target Price of HK$74, Maintains "Neutral"

SadMoneyMeow · 2026-03-16T03:39:16+00:00

Zhaoshan Securities International released research reports maintaining a "Neutral" rating on Li Auto, with a target price of HK$74 and US$19, pointing out that the company's competitiveness has declined, earnings pressure is high, especially due to heavy investment in the AI field. The firm lowered its non-GAAP net profit forecast while expecting potential performance improvement in the second half of the year.

SadMoneyMeow

2026-03-16 03:39:16

Abstract generation in progress

CICC International released a research report maintaining the target price of HKD 74 for Li Auto (02015) and USD 19 for LI.US, with a “Neutral” rating. The downgrade reflects the company’s declining competitiveness and high investments in AI.

The bank lowered the company’s non-GAAP net profit forecast by 82%/20%, considering: 1) Q1 is a period of product transition and profit recovery, with the new L9’s competitiveness in Q2 still to be observed and limited incremental contribution, leading to significant performance pressure in the first half; 2) increased investment in AI and embodied intelligence, which is the right direction but the product line is not yet fully developed.

The bank stated that the company’s Q4 performance was below expectations, with product structure issues and industry competition dragging down average selling price (ASP) and profit margins. Due to weak product lines in the first half, performance faced significant pressure, but there may be improvement in the second half as the company actively expands into AI.

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