Feb 25, 2024
Options Traders Snap Up Bullish Bets on Li Auto Ahead of Results
Bloomberg News
,![, Bloomberg](/polopoly_fs/1.2039089.1708922303!/fileimage/httpImage/image.png_gen/derivatives/landscape_620/image.png)
(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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