Daily Investment Strategy
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).
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to: https://apps.sfc.https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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