Daily focus：Li Auto (2015)
Li Auto reported revenue of RMB 27.4 billion in the third quarter, a 36.2% year-on-year decrease, and a net loss of RMB 624 million, reversing the profit trend from the previous year. Total vehicle deliveries during the period were 93,211 units, a 39.0% decrease compared to the same period last year, with the poor performance primarily dragged down by declining sales. Looking ahead to the fourth quarter, the company expects deliveries of 100,000 to 110,000 vehicles and revenue between RMB 26.5 billion and RMB 29.2 billion. Management anticipates a major upgrade to the L series and addressing battery production bottlenecks in 2026 to regain growth momentum, but short-term profit margins remain under pressure and the market remains highly competitive.
NDRC warned of a potential bubble in the humanoid robot industry
US stock markets were closed on Thursday for Thanksgiving public holiday. China's top economic planning agency issued a rare warning on Thursday, cautioning about the potential bubble risk in the rapidly expanding humanoid robot industry, despite the sector attracting significant investment and government support. An NDRC spokesperson stated that there are currently over 150 humanoid robot companies operating in China, and the number is still increasing. More than half of these are startups or companies entering from other sectors. The government must prevent a flood of highly similar models from inundating the market and squeezing out research and development space. We believe this will help the domestic robot industry avoid the situation seen with new energy vehicles, where a large number of inferior robots were launched, leading to industry infighting.
Hong Kong Stock Connect saw a net inflow of HK$1.33bn on Thursday, with Alibaba (9988) experiencing the largest net inflow at HK$920mn, followed by Pop Mart (9992). On the other hand, Xiaomi Group (1810) recorded the largest net outflow at HK$690mn, followed by Zijin Mining (2899).
Hong Kong stocks traded in a narrow range throughout the day, opening higher but then trending downwards. The Hang Seng Index closed at 25,858 points, down 87 points or 0.34%; the H-share Index fell 34 points or 0.38% to 9,130 points; and the Hang Seng Tech Index rose slightly by 1 point or 0.02% to 5,599 points. Total turnover for the day was HK$146.2 billion. New consumption concept stocks rose, with Pop Mart (9992) rising for the fifth consecutive day, closing up about 2.8%, benefiting from the implementation plan issued by six departments including the Ministry of Industry and Information Technology to promote consumption and expand the supply of diversified interest-based consumption. Institutions are optimistic about the development of the trendy toy sector. Innovative drug concept stocks fluctuated lower, with WuXi AppTec (2359) falling about 3.8%.
Source: KGI Investment Products and Solutions Department
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.
The AI Big four spent $230bn in capex. AI applications are driving demand for data centers and energy facilities, boosting jobs and productivity, as well as supporting U.S. GDP growth…