0530 GMT - Li Auto's bottom line is likely to have come under pressure in 1Q after a weak 4Q, HSBC analysts say in a note. Yuqian Ding and Li Yang forecast a 1.9 billion yuan net loss in 1Q, driven by lower seasonal volumes, destocking discounts and higher input costs. While the Chinese automaker's American depositary receipts have been relatively flat year to date, suggesting near-term headwinds are largely priced in, a meaningful volume recovery in 1H is likely limited, they say. The new L9 and other refreshments in its L series could be critical for 2026 volume momentum, they say. HSBC slashes its 2026 and 2027 earnings forecasts by 70% and 26%, respectively, on lower revenue assumptions, citing a weaker volume outlook and gross margin compression. It maintains a hold rating on Li Auto and cuts the target to $17.20 from $18.60. ADRs last closed at $17.13. (monica.gupta@wsj.com)

(END) Dow Jones Newswires

March 24, 2026 01:30 ET (05:30 GMT)

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