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

• Market Cap: HK$83.89B
• Dividend Yield: N/A
• Average Volume (3M): 10.97M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: 89.72%
• EPS Growth: 40.14%
• Country: HK
• Employees: 15,551
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Auto - Manufacturers
• EPS (TTM): -0.11
• Shares Outstanding: 1,116,414,000
• 10 Day Avg. Volume: 14,506,798
• 30 Day Avg. Volume: 10,971,213
• PEG Ratio: -1.08
• Price to Book (P/B): 7.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.41
• 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$71.06
• Price Target Upside: 13.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 56 Neutral
• Price Target: ―

Zhejiang Leapmotor Technology Co., Ltd. demonstrates strong revenue growth but struggles with profitability, which heavily impacts its financial performance score. Technical analysis shows a strong bullish trend, which is a positive sign for potential investors. However, the negative P/E ratio and lack of dividends reflect profitability issues, slightly dampening the overall score. Overall, the stock shows promise due to positive market trends, but investors should be cautious about the current financial health and valuation.

Positive Factors

Earnings

Leapmotor’s 1Q25 net loss of RMB130mn beat prior forecasts on higher average selling price and gross profit margin, as well as unexpected contribution from strategic cooperation.

Sales Forecast

Analyst raises FY25E sales volume forecast by 15% to 0.55mn units, projecting a breakeven at a net level in FY25E.

Negative Factors

Production Challenges

A possible production delay in its overseas KD plant could impact Leapmotor International's profit forecast.

Risks

Key risks to the rating and target price include lower sales volume and/or margins than expected.

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

Company Description

Zhejiang Leapmotor Technology Co., Ltd. Class H (9863) is a Chinese electric vehicle (EV) manufacturer known for developing and producing smart electric vehicles. The company operates within the automotive sector, focusing on the design, research and development, and manufacturing of electric cars. Leapmotor offers a range of EV models that cater to various consumer needs, emphasizing advanced technology, intelligent features, and sustainable transportation solutions.

How the Company Makes Money

Leapmotor generates revenue primarily through the sale of its electric vehicles. The company designs, manufactures, and sells a range of EV models, each targeting different segments of the automotive market, from compact cars to larger sedans and SUVs. Revenue is driven by direct sales to consumers as well as through partnerships with dealerships. Additionally, Leapmotor may engage in strategic collaborations and partnerships to enhance its technology offerings or expand its market reach. While specific financial data and partnership details are not provided, the core revenue model revolves around leveraging innovation, consumer demand for electric vehicles, and the growing trend towards sustainable mobility.

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

Summary

Zhejiang Leapmotor Technology is experiencing robust revenue growth, but profitability remains a significant challenge. The balance sheet shows moderate leverage, with room for improvement in equity efficiency. Positive trends in cash flow indicate better cash management, but sustained profitability is crucial for long-term financial health. Continued focus on operational efficiency and cost management is essential.

Income Statement

Zhejiang Leapmotor Technology Co., Ltd. has shown substantial revenue growth from 2023 to 2024, with an increase of 92%. However, the company continues to face challenges in profitability, with persistent negative net income and EBIT, indicating ongoing operational inefficiencies. The gross profit margin remains low, suggesting pressures on cost management and pricing strategies.

Balance Sheet

The balance sheet indicates a high level of financial leverage with a 0.27 debt-to-equity ratio. Although the company has maintained a positive equity position, the return on equity remains negative due to continued losses. The equity ratio stands at 26.76%, highlighting a moderate reliance on equity financing.

Cash Flow

The company has shown a notable improvement in free cash flow, turning positive in 2024, indicating better cash management. The operating cash flow to net income ratio is positive, suggesting that operational cash generation is decent despite net losses. However, the free cash flow to net income ratio reflects the need for further operational efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
32.16B	16.75B	14.40B	3.77B	709.39M
	Gross Profit
2.69B	80.47M	-2.37B	-1.76B	-413.43M
	EBIT
-3.17B	-4.38B	-6.14B	-3.56B	-1.07B
	EBITDA
-2.64B	-3.54B	-4.66B	-2.56B	-694.31M
	Net Income Common Stockholders
-2.82B	-4.22B	-5.94B	-3.43B	-1.24B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.72B	15.47B	10.98B	8.53B	733.13M
	Total Assets
37.65B	28.45B	21.63B	15.32B	3.88B
	Total Debt
2.71B	2.75B	6.56B	2.77B	3.42B
	Net Debt
-3.67B	-8.98B	-3.28B	-4.22B	2.78B
	Total Liabilities
27.58B	15.96B	11.90B	6.08B	4.26B
	Stockholders Equity
10.07B	12.50B	9.27B	8.84B	-667.75M
Cash Flow		Free Cash Flow
6.37B	-312.89M	-3.93B	-2.70B	-844.25M
	Operating Cash Flow
8.47B	1.08B	-2.28B	-862.12M	-481.98M
	Investing Cash Flow
-13.32B	-4.86B	-1.51B	-3.66B	-333.44M
	Financing Cash Flow
-503.45M	8.55B	7.41B	10.76B	1.15B

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

• Technical Analysis Sentiment: Neutral
• Last Price: 62.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9863, the sentiment is Neutral. The current price of 62.75 is above the 20-day moving average (MA) of 59.42, above the 50-day MA of 53.16, and above the 200-day MA of 35.48, indicating a neutral trend. The MACD of 2.98 indicates Positive momentum. The RSI at 50.00 is Neutral, neither overbought nor oversold. The STOCH value of 31.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
2338	75 Outperform	$142.07B	10.80	13.40%	4.74%	-1.07%	16.00%
1211	72 Outperform	$1.38T	27.98	23.91%	0.73%	33.89%	45.52%
2333	70 Neutral	$188.98B	8.89	14.58%	2.62%	5.32%	10.61%
Sector *	62 Neutral	$6.84B	11.23	3.09%	3.95%	2.66%	-25.23%
9863	56 Neutral	HK$83.89B	―	-24.98%	―	89.72%	40.14%

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

Zhejiang Leapmotor Invests in Wealth Management Products to Enhance Financial Position

Zhejiang Leapmotor Technology Co., Ltd. has announced its subscription to various wealth management products offered by SPD Bank, Industrial Bank, and CITIC Bank. These investments, which are principal guaranteed with floating returns, are part of the company’s financial strategy to manage its resources effectively. The move is likely to impact the company’s financial positioning by potentially enhancing its investment income, thereby supporting its operational and strategic objectives.

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.

Leapmotor Reports Robust Q1 2025 Growth and Expands Product Line

Zhejiang Leapmotor Technology Co., Ltd. reported a significant increase in revenue for Q1 2025, reaching RMB10,020 million, a 187.1% year-on-year growth. This growth is attributed to a 162.1% increase in sales and an optimized product portfolio. The company achieved a record gross margin of 14.9%, up from negative figures in the previous year, driven by increased sales volume, cost management, and product mix optimization. Despite a loss of RMB130 million, this was a substantial improvement from the previous year’s loss. Leapmotor’s vehicle deliveries also saw a remarkable rise, with over 87,552 units delivered in Q1 2025, marking it as the fastest-growing emerging auto brand in China. The launch of new models, such as the B10 and B01, equipped with advanced features and design awards, has strengthened Leapmotor’s market position and appeal to young customers.

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.

Leapmotor Schedules Board Meeting and Results Conference Call for Q1 2025

Zhejiang Leapmotor Technology Co., Ltd. has announced a board meeting scheduled for May 19, 2025, to approve and publish its first quarterly results for the period ending March 31, 2025. The company will host a conference call on the same day to discuss these results, providing an opportunity for investors to engage and ask questions, potentially impacting investor relations and market perception.

Leapmotor Partners with Peugeot Citroën for Electric Drive Development

Zhejiang Leapmotor Technology Co., Ltd., through its subsidiary Lingsheng Powertech, has entered into a cooperation agreement with Peugeot Citroën to provide electric drive assembly development and testing services. This agreement, which involves connected transactions due to Stellantis’ stake in Leapmotor, signifies a strategic collaboration that could enhance Leapmotor’s industry positioning and influence in the electric vehicle market.

Leapmotor Shareholders Boost 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 purchased 6,809,600 H Shares at an average price of HK$46.45 per share. This move reflects strong confidence in the company’s future development and positions the company for sustainable growth, holding 24.99% of the total issued shares. The transaction aligns with relevant laws and regulations, signaling a positive outlook for stakeholders.

Leapmotor Secures CSRC Approval for New Share Issuance

Zhejiang Leapmotor Technology Co., Ltd. has received approval from the China Securities Regulatory Commission (CSRC) for the registration of the issuance of new domestic shares under a general mandate. This approval allows the company to proceed with the subscription of shares to specific recipients, which is expected to enhance its capital base and support its strategic growth initiatives. The approval is valid for 12 months, and the company must adhere to regulatory requirements throughout the process. This development is significant for stakeholders as it positions Leapmotor to strengthen its market presence and potentially increase its competitiveness in the electric vehicle sector.

Leapmotor Reports Strong 2024 Results with Record Growth and Profit

Zhejiang Leapmotor Technology Co., Ltd. announced its audited annual results for 2024, showcasing significant financial and operational achievements. The company reported a positive net profit in the fourth quarter, marking its first profitable quarter ahead of schedule. Leapmotor’s revenue nearly doubled from the previous year, and vehicle deliveries increased by 103.8%, securing its position among the top three emerging auto brands. The launch of new models, C10 and C16, contributed to this growth, with the C10 receiving multiple international awards and safety certifications, highlighting Leapmotor’s commitment to innovation and quality.