(Bloomberg) -- Li Auto Inc.’s options are flashing positive signals ahead of the Chinese electric vehicle maker’s fourth-quarter results due later Monday. 

The daily trading volume of call options for the automaker’s Hong Kong-listed shares hit the highest level since November 2022 on Friday, reflecting optimism over further upside in the stock even after its more than 30% gain this month. 

The Beijing-based company is expected to record its first profitable year despite rising competition, with adjusted net profit estimated at 9.2 billion yuan ($1.3 billion) compared to a 2 billion yuan loss the previous year, Bloomberg-compiled data showed. 

“We expect Li’s 4Q gross margin at about 21% and operating margin at 5-6%, just one percentage point below 3Q readings,” Bloomberg Intelligence analyst Joanna Chen wrote in a note. Cheaper batteries and greater scale benefits helped offset the automaker’s pricing pressure, she added.  

--With assistance from Akshay Chinchalkar.

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