Li Auto Inc.

Li Auto Inc. (NASDAQ: LI) is a company that designs, develops, manufactures, and distributes intelligent electric SUVs. The Li ONE is a six-seat, big electric SUV featuring a range extension system and cutting-edge innovative vehicle technology from the firm. LI had 1.03 billion American Depository Shares (ADS) listed and outstanding (each ADS representing two Class A ordinary shares).

Key Highlights:

• The company reported a significant increase in total revenues to RMB 27.01 billion in FY21 (ended December 31, 2021) from RMB 9.46 billion in FY20.
• However, it reported an increase in net losses to RMB 321.46 million in FY21 from RMB 151.66 million in FY20.
• At the end of FY21, LI had a debt/equity ratio of 0.15x, compared to the industry median of 0.51x during the same timeframe.
• Stock is currently trading between its crucial short-term (50-day) and long-term (200-day) SMA support levels, with an RSI level of 52.94, approaching the overbought zone.
• Stock is leaning towards the higher-band of the 52-week range of USD 15.98 to USD 37.45.
• LI stock price has been relatively volatile throughout the year and has surged 2.16% and 21.71% in six and twelve months.

Conclusion:

Considering the company's topline performance, bottom-line pressure, leveraged balance sheet, macroeconomic headwinds, current trading levels, and hyped technical indicators, we recommend a "Watch" rating on the stock at the closing price of USD 27.86, up 2.13% as of March 24, 2022.

Three-Year Technical Price Chart (as of March 24, 2022). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above. 

ZIM Integrated Shipping Services Ltd.

ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) is a container liner shipping firm with certain assets. It provides personalized services such as land transportation and logistical services and unique shipping solutions such as out-of-gauge goods, refrigerated cargo, and hazardous cargo transportation. Cargo Services, Digital Services, Schedules, and Shipping Trades and Lines are among its offerings.

Key Highlights:

• The company reported a significant increase in revenues to USD 10.73 billion in FY21 (ended December 31, 2021) from USD 3.99 billion in FY20.
• ZIM reported a massive increase in net income to USD 4.65 billion in FY21, from USD 524.19 million in FY20.
• At the end of FY21, ZIM had a debt/equity ratio of 0.72x, higher than the industry median of 0.50x during the same timeframe.
• Stock is currently trading above its crucial short-term (50-day) and long-term (200-day) SMA support levels.
• Stock is leaning towards the higher-band of the 52-week range of USD 22.00 to USD 91.23.
• ZIM's stock price has surged 58.88% and 216.15% in the past nine and twelve months.

Conclusion:

Considering the company's strong fundaments, leveraged balance sheet, macro headwinds, and hyped technical indicators, we recommend a "Watch" rating on the stock at the closing price of USD 71.86, down 5.50% as of March 24, 2022.

Three-Year Technical Price Chart (as of March 24, 2022). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.