On November 27, CMB International issued a report indicating that, owing to the absence of immediate growth drivers for Li Auto (02015.HK) in the foreseeable future, it has revised its rating from 'Buy' to 'Hold.' Furthermore, it has lowered the target price to HK$70, aligning with projected price-to-earnings ratios of 40 times for 2026 and 18 times for 2027. The report highlighted that Li Auto's existing valuation premium adequately accounts for its pioneering status in the autonomous driving arena. Excluding one-off expenses related to the Mega recall, the company's third-quarter financial performance and operational losses generally conformed to market expectations, with a robust gross margin maintained at 20.4%. In light of the escalating competition within the extended-range electric vehicle sector, CMB International posits that Li Auto might resort to price reductions to stimulate sales of its next-generation L-Series models in the upcoming year. Consequently, the anticipated decrease in gross margin over the forthcoming two quarters may signify a more persistent trend rather than a transient occurrence.