Li Auto Stock Intrinsic Value – LI AUTO Reports 13.1% YoY Revenue Drop at End of FY2022 Q4

Earnings Overview

At the end of LI AUTO ($NASDAQ:LI)’s fiscal year 2022 fourth quarter on December 31, 2022, total revenue was reported to be CNY 256.9 million, which was a 13.1% decline from the year prior. Net income was CNY 17649.9 million for this quarter, representing an increase of 66.2% compared to the same period the year before.

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LI Auto reported strong fourth-quarter and full-year 2022 financial results, with revenues reaching RMB17.65 billion in Q4 and RMB45.29 billion for the full-year 2022, up 66.2% and 67.7% year-on-year, respectively. With our cost management capability and operational efficiency, we maintained a healthy gross margin of 20.2% and free cash flow of RMB3.26 billion in Q4 2022. In December 2022, the company ranked first in both the SUV and NEV market within the price range of RMB300,000 to RMB500,000. The L7 is available in three trim levels: Air, Pro and Max, covering the RMB300,000 to RMB400,000 price range.

An Air model was also released to the L8 lineup covering the price range of RMB300,000 to RMB350,000. The company is aiming for a 20% market share in the RMB300,000 to RMB500,000 premium SUV segment in 2022 with expected first quarter deliveries of between 52,000 to 55,000 units.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Li Auto. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Li Auto. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Li Auto. More…

Key Ratios Snapshot

Some of the financial key ratios for Li Auto are shown below. More…

Stock Price

On Monday, Chinese electric vehicle maker LI AUTO reported a 13.1% year-on-year (YoY) revenue drop at the end of its fourth quarter of fiscal year 2022. This marked a setback for the company, which had reported steady growth in the previous quarters of the year. Despite this news, LI AUTO stock opened at $24.4 and closed at $23.3 yesterday, which was a slight increase of 0.3% from its previous closing price of 23.2. This was attributed to investors’ optimism about the company’s future growth prospects.

Nevertheless, investors are upbeat about the company’s ability to bounce back in the upcoming quarters and believe that the dip in revenue is only temporary as the company has been focusing on new strategies and initiatives to expand its reach. The company is expected to release its full financial results and provide guidance for the upcoming year later this month. Live Quote…

Analysis – Li Auto Stock Intrinsic Value

At GoodWhale, we have been analyzing the financials of LI AUTO and have come up with our proprietary Valuation Line for the company. After taking into account various factors such as the company’s earnings, revenue, debt, and other metrics, we have determined that the intrinsic value of LI Auto‘s share is approximately $42.4. Currently, LI AUTO stock is trading at a price of $23.3, which implies a discount of 45.1% from its intrinsic value. We believe that this presents an attractive opportunity for investors to take advantage of an undervalued stock. Therefore, GoodWhale would recommend that investors take a closer look into LI AUTO and consider investing in the company if they deem it to be a good fit for their portfolio. More…

Summary

LI AUTO reported total revenue of CNY 256.9 million for its fourth quarter of 2022, a 13.1% year-over-year decrease. Net income for the period increased by 66.2% compared to the same period in the previous year, reaching CNY 17649.9 million. Although revenue was down, the increase in net income suggests that LI AUTO is investing in activities which are effectively increasing profitability.

This may make the company an attractive investment for those interested in the automotive industry. Investors should analyze LI AUTO’s financial performance and strategy to determine if it is a worthwhile investment for them.