The analyst rating for LI AUTO-W (02015.HK) is maintained at Neutral due to several factors impacting the company's performance. The report highlights a significant decline in revenue, with a 36% year-over-year drop to RMB27.4 billion in 3Q25, primarily driven by a 37% decrease in automotive sales revenue due to low quarterly deliveries. Additionally, the company reported a non-GAAP net loss of RMB360 million, indicating operational challenges. Although the broker expects Li Auto to return to profitability in 4Q, the recent sales pressure, the MEGA recall, and delays from switching battery suppliers have led to a conservative sales outlook. Consequently, the revenue forecasts for 2025-2027 were significantly reduced, prompting a decrease in the target price from HK$99.5 to HK$81.34.
