Lates News

HSBC Research indicated that due to the unfavorable product mix of Ideal Auto (LI.O), the company's automotive gross profit for the fourth quarter is expected to decline on a quarterly basis and it is estimated that the fourth quarter will be close to breakeven. As for next year's outlook, HSBC Research believes that the short-term headwinds have largely been reflected in the stock price, but visibility for next year remains limited. Due to intense competition, the company's earnings forecast for this year has been lowered to 0.921 billion RMB, and the earnings forecast for 2026 to 2027 has been reduced by 38% and 31% respectively. Therefore, the rating for Ideal has been downgraded from buy to hold, with the target price for the US stock lowered from $30.3 to $18.6, and the target price for the Hong Kong stock lowered from 118 Hong Kong dollars to 83 Hong Kong dollars.