Zhejiang Leapmotor Technology Co., Ltd. Class H (9863) AI Stock Analysis

• Market Cap: HK$80.76B
• Dividend Yield: N/A
• Average Volume (3M): 5.85M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: 139.96%
• EPS Growth: 86.04%
• Country: HK
• Employees: 15,551
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 1,131,047,100
• 10 Day Avg. Volume: 5,184,383
• 30 Day Avg. Volume: 5,846,262
• PEG Ratio: 0.35
• Price to Book (P/B): 4.06
• Price to Sales (P/S): 1.27
• P/FCF Ratio: 6.42
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$79.04
• Price Target Upside: 51.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$57.00 ▲(9.51% Upside)

Zhejiang Leapmotor Technology's overall stock score is primarily influenced by its strong revenue growth and stable balance sheet, which are positive indicators for future performance. However, the company's ongoing profitability challenges and weak technical indicators significantly weigh down the score. The negative P/E ratio and lack of dividend yield further impact the valuation negatively.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective sales strategies, which are crucial for long-term competitiveness in the EV market.

Cash Flow Improvement

Positive cash flow reflects improved financial management and operational efficiency, enhancing the company's ability to invest in growth and innovation.

Technological Advancement

Continued investment in R&D supports technological leadership, helping Leapmotor maintain a competitive edge in the rapidly evolving EV industry.

Negative Factors

Profitability Challenges

Ongoing profitability issues can hinder long-term financial health and limit the company's ability to reinvest in business growth and innovation.

Low Gross Profit Margin

A low gross profit margin indicates challenges in cost control and pricing power, which can impact the company's ability to achieve sustainable profitability.

High Financial Leverage

High leverage can increase financial risk, limiting flexibility in capital allocation and potentially affecting the company's ability to weather economic downturns.

Zhejiang Leapmotor Technology Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Zhejiang Leapmotor Technology Co., Ltd. is a Chinese electric vehicle manufacturer that specializes in the design, development, and production of intelligent electric vehicles. The company focuses on the automotive sector, particularly in producing electric cars that incorporate advanced technologies such as artificial intelligence and connectivity features. Leapmotor offers a range of electric vehicles including sedans and SUVs, targeting both domestic and international markets.

How the Company Makes Money

Leapmotor generates revenue primarily through the sale of its electric vehicles. The company has established various key revenue streams including direct vehicle sales, after-sales services, and potential revenue from software updates and connected services. Additionally, Leapmotor may benefit from strategic partnerships with technology firms and automotive suppliers that enhance its product offerings and market reach. The growing demand for electric vehicles in China and other markets also contributes to its earnings, as government incentives and a shift towards sustainable transportation drive consumer interest.

Zhejiang Leapmotor Technology Co., Ltd. Class H Financial Statement Overview

Summary

Zhejiang Leapmotor Technology shows strong revenue growth and improving cash flow metrics, but struggles with profitability due to negative profit margins and return on equity. The balance sheet is stable with a low debt-to-equity ratio, providing a solid foundation for future growth.

Income Statement

Zhejiang Leapmotor Technology has shown significant revenue growth, particularly in the TTM period with a 19.32% increase. However, profitability remains a challenge, with negative net profit and EBIT margins, indicating ongoing operational inefficiencies. The gross profit margin has improved over time, suggesting some progress in cost management.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.23, indicating a conservative leverage position. However, the return on equity is negative, reflecting the company's struggle to generate profits from its equity base. The equity ratio is strong, suggesting a solid capital structure.

Cash Flow

Zhejiang Leapmotor has demonstrated positive free cash flow growth and a healthy operating cash flow to net income ratio, indicating effective cash management. The free cash flow to net income ratio is strong, suggesting that the company is generating cash efficiently relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.57B	32.16B	16.75B	12.38B	3.13B	631.30M
Gross Profit	6.02B	2.69B	80.47M	-2.37B	-1.76B	-413.43M
EBITDA	-299.18M	-2.64B	-3.54B	-4.93B	-2.71B	-729.67M
Net Income	-576.03M	-2.82B	-4.22B	-5.11B	-2.85B	-1.10B
Balance Sheet
Total Assets	46.29B	37.65B	28.45B	19.27B	12.53B	3.27B
Cash, Cash Equivalents and Short-Term Investments	18.64B	20.72B	15.47B	7.96B	5.60B	176.85M
Total Debt	3.04B	2.71B	2.75B	2.21B	915.11M	2.43B
Total Liabilities	33.28B	27.58B	15.96B	11.01B	5.30B	3.83B
Stockholders Equity	13.01B	10.07B	12.50B	8.26B	7.23B	-667.75M
Cash Flow
Free Cash Flow	7.73B	6.37B	-312.89M	-3.93B	-2.70B	-844.25M
Operating Cash Flow	11.06B	8.47B	1.08B	-2.28B	-862.12M	-481.98M
Investing Cash Flow	-16.34B	-13.32B	-4.86B	-1.29B	-3.00B	-296.73M
Financing Cash Flow	2.55B	-503.45M	8.55B	6.36B	8.26B	923.83M

Zhejiang Leapmotor Technology Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9863, the sentiment is Negative. The current price of 52.05 is below the 20-day moving average (MA) of 57.19, below the 50-day MA of 60.90, and below the 200-day MA of 55.26, indicating a bearish trend. The MACD of -2.04 indicates Positive momentum. The RSI at 27.68 is Positive, neither overbought nor oversold. The STOCH value of 15.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9863.

Zhejiang Leapmotor Technology Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2333	73 Outperform	$187.42B	10.89	13.04%	3.26%	7.93%	-12.94%
0175	72 Outperform	$172.42B	9.51	17.60%	1.94%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2015	60 Neutral	€156.95B	18.96	12.34%	―	7.09%	-21.36%
9868	53 Neutral	HK$169.45B	-36.42	-9.03%	―	86.21%	51.50%
9863	49 Neutral	HK$80.76B	-121.11	-4.91%	―	139.96%	86.04%
9866	46 Neutral	HK$117.89B	-4.52	-328.79%	―	9.20%	-5.48%

Zhejiang Leapmotor Technology Co., Ltd. Class H Corporate Events

Leapmotor Shareholders Increase Holdings, Signaling Confidence in Future Growth

Zhejiang Leapmotor Technology Co., Ltd. announced an increase in shareholding by key shareholders, including Mr. Zhu Jiangming and Mr. Fu Liquan, who collectively purchased 3,243,500 H Shares at an average price of HK$63.19 per share. This move signifies strong confidence in the company’s future development and aims to safeguard public investors’ interests. The shareholders now hold a significant portion of the company’s shares, representing 23.59% of the total issued shares, which could impact the company’s market positioning and investor confidence.

The most recent analyst rating on (HK:9863) stock is a Hold with a HK$66.00 price target. To see the full list of analyst forecasts on Zhejiang Leapmotor Technology Co., Ltd. Class H stock, see the HK:9863 Stock Forecast page.

Leapmotor Completes New Share Issuance to Bolster EV Development

Zhejiang Leapmotor Technology Co., Ltd. has completed the issuance of new domestic shares, raising RMB2,597.36 million. The proceeds will be used primarily for research and development of new EV models and upgrading existing ones, with a portion allocated to working capital and general corporate purposes. This issuance increases the company’s total issued shares to 1,421,812,652, enhancing its capital structure and potentially strengthening its market position in the EV industry.

The most recent analyst rating on (HK:9863) stock is a Hold with a HK$76.00 price target. To see the full list of analyst forecasts on Zhejiang Leapmotor Technology Co., Ltd. Class H stock, see the HK:9863 Stock Forecast page.

Leapmotor Achieves First Positive Semi-Annual Profit Amid Record Vehicle Deliveries

Zhejiang Leapmotor Technology Co., Ltd. reported a net profit of RMB30 million for the first half of 2025, marking its first positive semi-annual net profit and positioning it as the second emerging auto brand in China to achieve this milestone. The company delivered 221,664 vehicles, leading the sales among emerging auto brands in China, and achieved a record monthly delivery of over 50,000 units in July 2025. Revenue surged by 174% year-on-year to RMB24.25 billion, driven by increased vehicle deliveries, strategic cooperation, and carbon credit trading. The gross margin improved significantly to 14.1%, attributed to economies of scale, cost management, and product mix optimization. The company also reported strong cash flow, with net cash from operating activities at RMB2.86 billion and a free cash flow of RMB860 million.

The most recent analyst rating on (HK:9863) stock is a Buy with a HK$44.20 price target. To see the full list of analyst forecasts on Zhejiang Leapmotor Technology Co., Ltd. Class H stock, see the HK:9863 Stock Forecast page.

Zhejiang Leapmotor Schedules Board Meeting and Interim Results Call

Zhejiang Leapmotor Technology Co., Ltd. has announced a board meeting scheduled for August 18, 2025, to approve and publish the interim results for the first half of the year. The company will also host a conference call to discuss these results, providing an opportunity for investors to engage and pose questions, potentially impacting stakeholder perceptions and market positioning.

The most recent analyst rating on (HK:9863) stock is a Buy with a HK$44.20 price target. To see the full list of analyst forecasts on Zhejiang Leapmotor Technology Co., Ltd. Class H stock, see the HK:9863 Stock Forecast page.