Ji Shi, an analyst from CMB International Securities, maintained the Buy rating on Zhejiang Leapmotor Technology Co., Ltd. Class H (9863 – Research Report). The associated price target is HK$50.00.
Ji Shi has given his Buy rating due to a combination of factors that highlight Zhejiang Leapmotor Technology Co., Ltd.’s promising future prospects. The competitive pricing strategy for the B10 electric vehicle, along with the company’s strong in-house research and development capabilities, particularly in autonomous driving and chassis technology, are seen as significant strengths. These factors have led to an upward revision of the company’s projected sales volume for FY25, indicating confidence in its market performance.
Furthermore, the company’s financial outlook appears positive with expectations of a minimal net loss in FY25 and a substantial net profit in FY26. The recent increase in gross margins and revenue in 4Q24, combined with effective cost control measures, suggest that Leapmotor is on a path toward achieving economies of scale and profitability. The upcoming investor day, which will showcase the company’s technological advancements, is also anticipated to act as a catalyst for the stock’s performance. Key risks include potential lower sales volumes and margins, as well as broader sector de-rating, but the overall outlook remains optimistic.
According to TipRanks, Shi is ranked #2218 out of 9377 analysts.