BofA Securities: Li Auto-W (02015.HK) introducing external capital into its chip business helps expand non-automotive operations.

Zhitong Finance APP has learned that BofA Securities issued a research report stating it maintains a "Neutral" rating on Li Auto-W (02015.HK) and an H-share target price of HK$58.9. The bank noted that Li Auto recently announced that its subsidiary MHX Technology, which focuses on chip and domain controller businesses, will conduct a RMB 1.625 billion equity financing, bringing in external investors including Hangzhou Jingtao, Lanchi Ventures, Huaye Tiancheng and MiraclePlus. Li Auto will invest RMB 1 billion through a wholly-owned subsidiary, maintain its status as controlling shareholder, and continue to consolidate MHX Technology in its financial statements.