Daily focus：Li Auto（2015）
Company’s second-quarter 2025 results fell short of consensus, with revenue falling 4.5% YoY to RMB 30.2bn and net profit remaining flat at RMB 1.09bn. Total deliveries increased 5% YoY to 111,074 vehicles, driven by models such as the L7, L8, L9, and MEGA, but fell short of consensus. Looking ahead, the company expects third-quarter deliveries to plummet by approximately 40% YoY to 90,000 to 95,000 vehicles, with revenue also expected to decline by approximately 40% YoY to RMB 24.8 to 26.2bn, significantly below market consensus. To expand its product range and enhance its market position, Li Auto plans to launch the Li i6, a five-seater pure electric SUV for families, in September.
The Federal Reserve's independence faces challenges
The S&P 500 index closed at a new high of 6,501 points on Thursday, reflecting market confidence in the economy's resilience. However, Trump's dismissal and subsequent lawsuit against Federal Reserve official Lisa Cook became the hottest topic in financial markets. This unprecedented legal battle challenges the central bank's 112-year political independence and could reshape the relationship between the White House and the Fed. Cook was fired for mortgage fraud, but legal experts question the president's authority, arguing that "good cause" is required to remove a Fed official. The move triggered a weakening of the US dollar and an increase in long-term Treasury yields, raising investor concerns that a politicized central bank could weaken its ability to control inflation.
Hong Kong Stock Connect recorded a net outflow of HK$20.44bn on Thursday, with SMIC (0981) receiving the largest net inflow of HK$890mn, followed by Akeso (9926). Meanwhile, the Tracker Fund of Hong Kong (2800) saw the largest net outflow of HK$11.89bn, followed by the Hang Seng China Enterprises (2828).
Hong Kong stocks rose 78 points throughout the day, with the Hang Seng Index closing at 25,077, up 0.32%. The Hang Seng Tech Index rose 30 points, or 0.53%, to 5,674 points, while the China Enterprises Index rose 30 points, or 0.34%, to 8,947 points. Market turnover reached 335.6 billion yuan. Haier Smart Home (6690) saw its share price rise 4.6% on the back of increased interim earnings. Guotai Junan International (1788) saw its share price rise 15.7% after launching a cryptocurrency trading service. Mengniu (2319) saw its share price fall 4% after the market lowered its target price following the company's earnings announcement.
Source: KGI Investment Products and Solutions Department
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