Daily Investment Strategy
Daily focus：Li Auto（2015）
Li Auto delivered 500,500 vehicles in 2024, up 33% YoY, with strong demand for AD Max-equipped models. Over 70% of orders for cars above ¥300,000 and 80% for those above ¥400,000 had AD Max. In January 2025, Li Auto led the Chinese car market in the ¥200,000+ segment. Despite strong performance, its stock hasn’t reflected this, but with 2025 marking the rise of smart driving, potential growth is likely. Li Auto has boosted its smart driving R&D, becoming an industry leader with a smart driving model penetration rate of 60-70%. Its new E2E and VLM systems were fully rolled out to AD Max users in October. The OTA 7.0 update launched in January, along with the new Li Auto AD Max V13.0, has enhanced the user experience. Li Auto's CEO, Li Xiang, previously unveiled the "VLA" model, focusing on the integration of vision, language, and action. This highlights the company’s smart driving tech and future strategy. Li Auto will use NVIDIA Drive Thor, offering 2000 TOPS of processing power. In two years time, with 20 million clips of training data, MPI (miles per intervention) could reach 500 kilometers. Target price is HK$115.
S&P 500 Notches Fresh Record on Dip Buying into Close
The S&P 500 closed at a new high on Tuesday, driven by dip buying towards the end of the trading day. Intel shares jumped about 16%, influenced by a Wall Street Journal report that Broadcom has been considering acquiring Intel's chip design and marketing operations, while TSMC has been exploring acquiring a controlling stake, or all, of Intel's chip factories. Concurrently, U.S. and Russian officials are engaged in critical negotiations in Saudi Arabia, discussing a potential agreement to halt the war in Ukraine. These discussions signify a possible thaw in relations between Washington and Moscow, which have been largely frozen since the conflict began in early 2022. U.S. Secretary of State Marco Rubio, White House National Security Advisor Mike Waltz, and Middle East envoy Steve Witkoff are representing U.S. President Donald Trump, while Russian Foreign Minister Sergei Lavrov and a Kremlin foreign policy advisor will represent Russian President Vladimir Putin. Media reports suggest that this gathering could be a precursor to a face-to-face meeting between Trump and Putin. Trump informed European allies last week that he had spoken with Putin and had directed his team to initiate peace talks.
Hong Kong Stock Connect had a net inflow of HK$22.4bn Tuesday of which Tracker Fund (2800) had the largest net inflow, reaching HK$9.12bn; followed by Alibaba (9988). Meituan (3690) recorded the largest net outflow at $0.77bn, followed by Ali Health (241).
Wen Kit Kenny is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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