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): 0.12
• 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$77.55
• Price Target Upside: 57.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$53.00 ▲(7.90% Upside)

Zhejiang Leapmotor Technology's overall stock score is primarily influenced by its financial performance, which shows strong revenue growth and improving cash flow but is hindered by profitability challenges. The technical analysis indicates a bearish trend, and the valuation metrics suggest potential overvaluation due to negative earnings. The absence of earnings call insights and corporate events leaves these areas unaddressed.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and product demand, which can lead to increased market share and long-term business sustainability.

Cash Flow Management

Effective cash management supports operational stability and provides resources for reinvestment and strategic initiatives, enhancing long-term financial health.

Balance Sheet Health

A strong balance sheet with low leverage provides financial flexibility and reduces risk, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Negative Factors

Profitability Challenges

Ongoing profitability issues can hinder reinvestment capabilities and shareholder returns, potentially impacting long-term growth and competitive positioning.

Operational Inefficiencies

Operational inefficiencies reflected in negative margins suggest cost management challenges, which can affect long-term profitability and market competitiveness.

Return on Equity

Negative return on equity indicates inefficiencies in using shareholder capital, which can limit growth potential and investor confidence over time.

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

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: 49.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 49.12 is below the 20-day moving average (MA) of 51.63, below the 50-day MA of 56.87, and below the 200-day MA of 56.65, indicating a bearish trend. The MACD of -1.72 indicates Negative momentum. The RSI at 33.13 is Neutral, neither overbought nor oversold. The STOCH value of 10.99 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%	3.34%	7.93%	-12.94%
0175	72 Outperform	$177.19B	9.80	17.60%	1.90%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2015	59 Neutral	€156.95B	18.96	7.01%	―	-10.21%	-54.95%
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	39 Underperform	HK$117.89B	-4.52	-297.21%	―	14.73%	2.81%

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

Zhejiang Leapmotor Joins Hang Seng TECH Index

Zhejiang Leapmotor Technology Co., Ltd. announced its inclusion as a constituent stock of the Hang Seng TECH Index, effective December 8, 2025. This inclusion is seen as a significant recognition of the company’s technological innovation and market performance, expected to broaden its investor base and enhance trading liquidity, thereby strengthening its brand influence.

Leapmotor Announces EGM to Reshape Board and Financial Strategy

Zhejiang Leapmotor Technology Co., Ltd. has announced an extraordinary general meeting to discuss several key resolutions, including changes in its board of directors and financial strategies. The meeting will address the removal of Mr. Douglas Ostermann and the election of Mr. Davide Mele as non-executive directors, an increase in the company’s credit line, and the adoption of a new 2025 Share Option Scheme. These decisions are expected to impact the company’s governance and financial flexibility, potentially enhancing its strategic positioning in the market.

Leapmotor Revises Agreements to Boost Product Offerings

Zhejiang Leapmotor Technology Co., Ltd. has announced revisions to its annual caps for the New Product Purchase and Sale Framework Agreement with Hyxi Technology, effective for 2025 and 2026. Additionally, the company has entered into a new framework agreement with Hangzhou Poer for the purchase of supporting products like charging piles and guns. These agreements are part of the company’s ongoing connected transactions, which are subject to certain reporting and review requirements under the Hong Kong Listing Rules, reflecting the company’s strategic efforts to enhance its product offerings and operational capabilities.

Zhejiang Leapmotor Announces Board Change and Articles Amendment

Zhejiang Leapmotor Technology Co., Ltd. has announced a proposed change in its board of directors, with Stellantis nominating Mr. Davide Mele to replace Mr. Douglas Ostermann as a non-executive director. This change is subject to shareholder approval and reflects Stellantis’ influence as a shareholder. Additionally, the company plans to amend its Articles of Association following an increase in registered capital due to the exercise of options under its pre-IPO share option scheme, aligning with recent regulatory updates in China.

Leapmotor Reports Strong Q3 2025 Financial Results with Record Sales

Zhejiang Leapmotor Technology Co., Ltd. announced its unaudited financial results for Q3 2025, showcasing a significant turnaround with a net profit of RMB150 million compared to a net loss in the same period last year. The company achieved a remarkable year-on-year revenue increase of 97.3%, driven by a surge in vehicle deliveries and improved profitability. With sales volume reaching 173,852 units in Q3 and surpassing 70,000 units in October, Leapmotor has maintained its position as the top emerging auto brand in China. The company’s strategic optimization of its product portfolio and effective cost management have contributed to a higher gross margin and robust cash flow, positioning it strongly in the competitive electric vehicle market.

Zhejiang Leapmotor Schedules Q3 Results Announcement and Conference Call

Zhejiang Leapmotor Technology Co., Ltd. has announced a board meeting scheduled for November 17, 2025, to approve and publish its third-quarter results for the period ending September 30, 2025. The company will also host a conference call on the same day to discuss these results, providing investors an opportunity to engage and ask questions, reflecting its commitment to transparency and investor relations.

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.