Ji Shi, an analyst from CMB International Securities, maintained the Buy rating on Zhejiang Leapmotor Technology Co., Ltd. Class H. The associated price target was lowered to HK$73.00.
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Ji Shi’s rating is based on several positive indicators for Zhejiang Leapmotor Technology Co., Ltd. Despite a slight miss in net profit expectations for 3Q25 due to lower-than-expected other revenue, the company’s vehicle gross margin remained resilient at 13.3%. Ji Shi anticipates that Leapmotor will meet its sales volume and net profit targets for FY25, with strong sales momentum expected to continue into FY26. The analyst projects that overseas sales volume could more than double year-over-year in FY26, supported by the introduction of new A-series and D-series models.
Furthermore, Ji Shi expects a significant increase in net profit for FY26, forecasting a fourfold rise to RMB3.5 billion. The company’s revenue for 3Q25 exceeded expectations, driven by a higher-than-anticipated average selling price, and the gross margin rose to 14.5%. Although the target price was adjusted from HK$80.00 to HK$73.00 to account for potential industrywide sales slowdowns, the Buy rating is maintained due to the overall strong sales outlook and potential for sustainable profit growth.
Shi covers the Consumer Cyclical sector, focusing on stocks such as Zhejiang Leapmotor Technology Co., Ltd. Class H, Geely Automobile Holdings, and TUHU Car Inc. Class A. According to TipRanks, Shi has an average return of 14.4% and a 50.00% success rate on recommended stocks.