Zhejiang Leapmotor Technology Co., Ltd. Class H, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Ji Shi from CMB International Securities maintained a Buy rating on the stock and has a HK$80.00 price target.
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Ji Shi has given his Buy rating due to a combination of factors that highlight Zhejiang Leapmotor Technology Co., Ltd.’s strong financial performance and growth prospects. The company reported a net profit of RMB163 million in the second quarter of 2025, significantly surpassing expectations by RMB115 million. This robust performance is attributed to strong sales momentum, which is expected to persist through the fiscal year 2026, supported by the launch of new models and expansion into overseas markets.
Furthermore, the company’s gross profit margin remained resilient despite market challenges, and Leapmotor achieved its first-ever positive operating profit, aided by government grants. The management’s optimistic sales volume guidance, coupled with the success of existing models, boosts confidence in the upcoming D-series models. The analyst also raised the net profit forecasts for FY25 and FY26, anticipating substantial growth driven by economies of scale and high-margin revenue contributions. The target price for the stock has been increased, reflecting the company’s high growth potential, although risks such as lower-than-expected sales volume or gross margin and sector de-rating remain.
In another report released today, Citi also maintained a Buy rating on the stock with a HK$100.00 price target.