Chinese stocks experienced a decline today after China's National Development and Reform Commission (NDRC) failed to meet investor expectations during its press conference. As a result, the Hang Seng Index, which represents large Hong Kong and mainland China stocks, saw a significant drop of 9.4%. Among the affected stocks, Li Auto (LI, Financial) experienced a price decrease of 7.03%.
Li Auto Inc (LI, Financial), a leading Chinese new energy vehicle (NEV) manufacturer, saw a notable decline in its stock price, dropping to $28.37. The drop of 7.03% highlights investor concerns related to the macroeconomic outlook shared by the NDRC.
Analyzing Li Auto's financial health, the company shows strong financial strength with an Altman Z-Score of 3.18, indicating a lower risk of bankruptcy. Despite facing some medium and severe warning signs, such as possible financial manipulation as indicated by the Beneish M-Score, Li Auto's revenue growth remains impressive. The company reported a 68.4% revenue growth year-over-year.
Li Auto (LI, Financial) is trading with a price-to-earnings (P/E) ratio of 21.28, which provides a basis for evaluating its valuation. The GF Value indicates a possible value trap, suggesting that investors should be cautious. For more details on Li Auto’s valuation, visit the GF Value page.
Looking forward, Li Auto is expected to report its next earnings on November 8, 2024. The company’s market capitalization stands at approximately $30.1 billion, with a price-to-book (P/B) ratio of 3.47, reflecting its growth trajectory in the competitive NEV market.
