CICC released a research report maintaining an outperform industry rating for Li Auto-W (02015). The Hong Kong and US shares correspond to 36x/26x 25E and 17x/14x 26E P/E respectively. The firm maintains its 2025/26 earnings forecasts and target prices of HK$108/US$28 for Hong Kong and US shares, corresponding to 38x/28x 25E and 18x/15x 26E P/E, with 8%/8% upside potential.
On September 26, the company held the Li L6 launch event and achieved immediate delivery upon release. CICC's main views are as follows:
**Li L6 Officially Launched, Returning to Single Product Strategy**
The L6 returns to a single product strategy, launching only one model priced at RMB 249,800, matching the starting price of the extended-range L6. The L6's initial sales benefits are substantial, including RMB 10,000 cash discount and standard air suspension, further reducing the effective pricing. The L6 is positioned as a five-seat mid-to-large SUV, equipped with 5C lithium iron phosphate batteries with a maximum range of 720km and supporting 500kW ultra-fast charging. Combined with the layout of over 3,300 ultra-fast charging stations, the firm expects this to effectively alleviate users' range anxiety.
In terms of intelligence, the L6 comes standard with LiDAR and Thor chip, combined with AD Max and VLA architecture, enhancing the advanced intelligent driving experience. The interior highlights "Queen's seat" and "small living room" family attributes, strengthening appeal to family users. The firm believes the L6 is expected to become an important driver of the company's sales growth.
**Self-Developed Chips Accelerate Progress, Intelligence Advantages Gradually Emerging**
In terms of intelligence, the company has made numerous positive developments recently: 1) The self-developed intelligent driving chip has officially completed sample chip tape-out and entered the critical pre-production stage. Currently, the M100 chip has begun small-batch vehicle road testing, targeting better performance and energy efficiency balance. 2) The company's intelligent driving foundation model adopts end-to-end + VLA architecture, persisting in self-development and continuously improving computing capabilities and user experience in intelligent driving. Looking ahead, the firm is optimistic about the company's forward-looking AI layout and its capability performance in the pan-AI field.
**Continued Channel Expansion, Clear Leading Advantage in 2026**
The company has recently made active adjustments in channels, including optimizing store combinations in first, second, and third-tier cities, relocating inefficient stores, balancing the ratio of mall stores (high customer acquisition) and central stores (high conversion), and planning to expand into fourth and fifth-tier cities through the lightweight "Star Store" model, shortening store opening cycles and reducing investment.
Additionally, regarding how to extend product cycles, company management stated during the 2Q25 earnings call that they will continue optimizing product SKU and configuration strategies, improving iteration frequency, and ensuring faster product releases. The company is confident that its 2026 vehicle product capabilities and AI systematic capabilities will exceed the industry-leading level of the Li L9 era in 2022.
**Risk Factors:** Pure electric vehicle models falling short of expectations; intelligent driving falling short of expectations; intensified market competition.