Li Auto Inc.’s options are indicating positive sentiment ahead of the Chinese electric vehicle manufacturer’s fourth-quarter results, scheduled to be released later on Monday. The daily trading volume of call options for Li Auto’s Hong Kong-listed shares surged to its highest level since November 2022 on Friday, signaling optimism for further upside in the stock despite its more than 30% gain this month.
Based in Beijing, Li Auto is anticipated to report its first profitable year amidst increasing competition. Bloomberg-compiled data suggests an estimated adjusted net profit of 9.2 billion yuan ($1.3 billion), a significant improvement compared to the 2 billion yuan loss recorded the previous year.
“We expect Li’s 4Q gross margin to be around 21% and operating margin to be at 5-6%, just one percentage point below 3Q readings,” noted Bloomberg Intelligence analyst Joanna Chen. She attributed this performance to the company’s ability to mitigate pricing pressure through cheaper batteries and enhanced scale benefits.
As anticipation builds for Li Auto’s quarterly results, options traders are showing confidence in the company’s prospects, suggesting potential gains in the near future. Stay tuned for the latest updates on Li Auto’s performance in the electric vehicle market.
