BlackRock’s Latest Report on China and 5 Stocks to Watch

Page 1 of 5

In this article, we discuss BlackRock’s latest report on China and the 5 stocks to watch. If you want to read our detailed analysis of BlackRock’s Chinese stock picks and market outlook, go directly to BlackRock’s Latest Report on China and 10 Stocks to Watch.

5. Li Auto Inc. (NASDAQ:LI)

BlackRock’s Stake Value: $771.59 million

Number of Hedge Fund Holders: 24

Li Auto Inc. (NASDAQ:LI) is another Chinese automaker stock which features in BlackRock’s Q1 2022 portfolio, with 29.89 million shares valued at $771.6 million. The Beijing-based company offers smart electric vehicles equipped with ADAS (advanced driver assistance systems) under the Li ONE brand for its SUVs. As of May 16, shares of Li Auto Inc. (NASDAQ:LI) have gained 15.76% in the last 12 months, but slumped 32.53% in the year to date.

On May 11, Citi analyst Jeff Chung reiterated a ‘Buy’ rating on Li Auto Inc. (NASDAQ:LI) shares, and reduced the firm’s price target to $26.80 from $51.50. The firm’s first quarter earnings showed a stable free cash flow and ‘defensive’ margin trends, according to the analyst, who maintained his volume forecasts through 2024. But given the expectations of higher costs and growing R&D investment with new model launch, the analyst reduced his earnings estimates for 2022 and 2023 by 83% and 36%, respectively.

Investors were seen buying into Li Auto Inc. (NASDAQ:LI). 24 hedge funds reported bullish bets on the company shares at the close of Q4 2021, as compared to 20 hedge funds a quarter ago. Billionaire Jim Simons upped his stake in the Chinese firm by 162% to consist of 4.47 million shares valued at $115 million, making his hedge fund Renaissance Technologies the largest shareholder of Li Auto Inc. (NASDAQ:LI) at the end of the first quarter of 2022.

Page 1 of 5