KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Technical Outlook
Li Auto’s stock is trading above both its 20-day and 50-day moving averages, showing a strong upward trend.
Technical indicators like the MACD suggest positive momentum.
If the price breaks above HKD 122 with strong volume, the next resistance is at HKD 125.
Business Summary
Li Auto designs and sells smart electric SUVs in China. The company is part of the growing new energy vehicle sector and benefits from strong domestic demand.
Financial Highlights (in million HKD)
| Year | Revenue | Net Profit | Profit Margin |
|---|---|---|---|
| FY2025F | 178,826 | 11,009 | 6.2% |
| FY2026F | 231,437 | 16,196 | 7.0% |
| FY2027F | 269,323 | 20,532 | 7.6% |
Net profit is expected to grow 27% annually over the next 3 years, showing Li Auto is becoming more efficient and profitable.
Profit margins are stable at around 7%, which is strong for the auto industry.
Balance Sheet (FY2024):
The company’s assets far exceed liabilities, showing financial strength.
Equity base remains solid, and net gearing is low, meaning low debt risk.
Key Takeaways
Strong Buy call supported by solid financials and bullish technical indicators.
Li Auto is growing fast, with profits expected to nearly double in the next 3 years.
Technically, the stock is on an upward trend, with room for further upside if it breaks key levels.
A good choice for investors looking to tap into China’s electric vehicle market growth.
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