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

• Market Cap: HK$84.14B
• Dividend Yield: N/A
• Average Volume (3M): 9.02M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: 139.96%
• EPS Growth: 86.07%
• Country: HK
• Employees: 15,551
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 0.13
• Shares Outstanding: 1,131,047,100
• 10 Day Avg. Volume: 6,440,163
• 30 Day Avg. Volume: 9,015,286
• 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$88.75
• Price Target Upside: 38.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 48 Neutral
• Price Target: HK$62.00 ▼(-2.97% Downside)

The overall stock score is primarily influenced by financial performance and technical analysis. Despite strong revenue growth, profitability issues and valuation challenges weigh heavily on the score. Technical indicators suggest a neutral to bearish trend, further impacting the stock's attractiveness.

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. principally engages in the research and development, production, and sale of energy vehicles in the People's Republic of China. The company offers C01, a smart electric sedan; C11, a mid-sized smart electric sports utility vehicle; T03, a smart electric mini car; and S01, a smart electric coupe. It also provides electronic components for smart EVs; electric vehicle charging; car rental; and technical, as well as aftersales services. The company was incorporated in 2015 and is headquartered in Hangzhou, China.

How the Company Makes Money

Zhejiang Leapmotor Technology Co., Ltd. primarily generates revenue through the sale of its electric vehicles. The company targets a diverse customer base, offering a range of models that vary in size, features, and price points to meet different consumer needs. Leapmotor invests heavily in research and development to innovate and improve its product offerings, which helps maintain its competitive edge in the growing EV market. The company's revenue stream is significantly supported by strategic partnerships with automotive technology firms and suppliers, enabling it to leverage cutting-edge technology and efficient manufacturing processes. Additionally, Leapmotor may benefit from government incentives and subsidies aimed at promoting electric vehicle adoption, further bolstering its financial performance.

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.

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
EBITDA	-2.64B	-3.54B	-4.66B	-2.56B	-694.31M
Net Income	-2.82B	-4.22B	-5.94B	-3.43B	-1.24B
Balance Sheet
Total Assets	37.65B	28.45B	21.63B	15.32B	3.88B
Cash, Cash Equivalents and Short-Term Investments	20.72B	15.47B	10.98B	8.53B	733.13M
Total Debt	2.71B	2.75B	6.56B	2.77B	3.42B
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: Positive
• Last Price: 63.90
• 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 Positive. The current price of 63.9 is below the 20-day moving average (MA) of 65.03, above the 50-day MA of 63.19, and above the 200-day MA of 48.85, indicating a neutral trend. The MACD of -0.48 indicates Positive momentum. The RSI at 48.79 is Neutral, neither overbought nor oversold. The STOCH value of 30.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
0175	77 Outperform	186.78B	11.26	19.17%	1.79%	0.00%	0.00%
2333	76 Outperform	212.12B	11.50	16.07%	2.82%	3.94%	-6.40%
2015	73 Outperform	195.56B	23.78	11.33%	―	7.09%	-21.36%
9868	61 Neutral	157.48B	-33.88	-18.51%	―	65.91%	48.38%
9866	57 Neutral	103.47B	-4.00	-379.72%	―	9.20%	-5.48%
9863	48 Neutral	HK$84.14B	―	-4.91%	―	139.96%	86.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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

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.

Zhejiang Leapmotor Announces Shareholding Changes

Zhejiang Leapmotor Technology Co., Ltd. announced a change in the shareholding of its single largest group of shareholders. Hangzhou Mingzhao Shengye Enterprise Management Partnership L.P. will reduce its holdings of the company’s H shares on behalf of its limited partners, while maintaining a significant stake on behalf of Mr. Zhu Jiangming. This adjustment will not impact the 10-year lock-up commitment made by the company’s founders, ensuring stability in its ownership structure.

The most recent analyst rating on (HK:9863) stock is a Buy with a HK$72.00 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.