According to the Intelligence Finance app, Haitong International has released a research report stating that it maintains its 'outperform the market' rating for Li Auto Inc-W (02015), with a reasonable value range of HKD 89.26-96.7. The bank believes that Li Auto's intelligent driving continues to grow, and the 'end-to-end+VLM' automatic driving fast and slow system demonstrates the company's ability to continue exploring and promoting in the intelligent driving field. With the upcoming full delivery of Li Auto's NOA without maps in July 2024 and further upgrade of active safety capabilities, the bank is optimistic that the strengthening of its Asia Vets capabilities will drive sales growth for the company. Recently, Li Auto announced the latest progress of its intelligent driving products and technologies at the 2024 Intelligent Driving Summer Event.

Haitong International's main viewpoints are as follows:

Li Auto's intelligent driving continues to grow, and NOA without maps will soon be fully delivered.

According to the official WeChat public account of Li Auto, Li Auto's NOA without maps will be officially delivered to ADMax full users in July 2024. Since the experience of Li Auto's NOA without maps began on May 10, 2024, the user mileage penetration rate is greater than 80%, the longest single-day mileage is more than 424km, and the longest single-day duration is more than 9.5 hours. As of June 2024, Li Auto's intelligent driving cumulative mileage has reached 1.9 billion kilometers, compared to 1.2 billion kilometers at the end of 2023.

Li Auto's AD Max active safety capabilities have been upgraded.

Li Auto has upgraded the four major active safety capabilities based on the frequency and severity of safety risks: (1) Complex urban intersections: A specialized AEB capability is used to address multi-target, multi-trajectory scenarios. (2) Nighttime AEB: Achieves 120 km/hour stopping to unlit stationary trucks. (3) Full automatic emergency steering (AES): Can react at extreme speed and complete avoidance without the need for human steering assistance in extreme scenarios. (4) Full-range low-speed AEB: Avoids collision risks in all directions (front, rear, and sides) to solve parking problems for users.

End-to-end+VLM, the next generation of Li Auto's automatic driving system makes the car more like a human.

Li Auto's fast and slow system for autonomous driving: System 1 is the end-to-end model (E2E). The biggest advantage of the One-Model end-to-end model is its high efficiency. System 2 is the vision-language model (VLM), which understands the three-dimensional world like a human and forms thinking decisions. Li Auto's fast and slow system for autonomous driving depends on intuition and instinct to ensure 'high efficiency' in most scenarios and consciously analyzes and resolves the 'high ceiling' in a minority of scenarios.

Risk Warning: New car sales are lower than expected; raw material prices have risen sharply; and investment in pure electric models exceeds expectations.