By Jiahui Huang

Li Auto is scheduled to report results for the third quarter on Thursday. Here is what you need to know:

NET PROFIT: The Chinese electric-vehicle maker, known for its hybrid cars, is expected to post net profit of 2.62 billion yuan, equivalent to $367.7 million, for the third quarter, according a poll of analysts by Visible Alpha. That would be 7.1% lower than a year earlier.

REVENUE: Its revenue likely rose 24% to 42.99 billion yuan, according to Visible Alpha. That would beat the company's guidance of between 39.4 billion yuan and 42.2 billion yuan. The EV maker delivered 152,831 vehicles during the period, meeting its guided range of 145,000-155,000 units.

Li Auto's Hong Kong-listed shares climbed 54% in the third quarter, paring declines this year to 24%.

WHAT TO WATCH:

--MARGIN: After a challenging second quarter for the company, investors will look at vehicle and gross margins to examine its cost control and profitability, analysts said. Li Auto's vehicle margin is expected at 19.28% for the third quarter, down from 21.1% a year earlier, according to the Visible Alpha poll. Its margin may be pressured by the new L6 SUV's low price tag, Deutsche Bank analyst Bin Wang wrote in a recent note.

--OUTLOOK: Li Auto typically provides revenue and vehicle delivery guidance along with its quarterly results. Investors should watch for its fourth-quarter forecasts, though there won't be much of a surprise, Nomura auto analyst Joel Ying said.

--FULL EV MODELS & AUTONOMOUS DRIVING: With Li Auto's first all-electric vehicle, the MEGA, getting a lukewarm response from consumers, investors will be interested in its plans for fully electric models in the next few years, CCB International analyst Qu Ke said. Another point of focus is its plan to rev up autonomous-driving technology given rising competition in the space, the analyst said.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

October 29, 2024 02:54 ET (06:54 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.