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Zhejiang Leapmotor Technology Co., Ltd. Class H (HK:9863)
:9863
Hong Kong Market

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

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HK

Zhejiang Leapmotor Technology Co., Ltd. Class H

(9863)

Rating:52Neutral
Price Target:
HK$58.00
▲(7.41%Upside)
Zhejiang Leapmotor Technology's stock score is primarily influenced by its strong revenue growth and improved cash flow management. However, persistent profitability issues and negative valuation metrics significantly weigh down the score. Technical indicators suggest a mixed outlook with potential for consolidation.
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.
Product Strategy
Leapmotor's aggressive pre-sale price for its new B10 EV, along with its in-house autonomous driving and chassis capabilities, gives more confidence about its sales.
Sales Volume Forecast
Analyst raises FY25E sales volume forecast by 15% to 0.55mn units, projecting a breakeven at a net level in FY25E.
Negative Factors
Operational Risks
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 (9863) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionZhejiang 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 MoneyLeapmotor 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 demonstrates strong revenue growth but continues to struggle with profitability. The balance sheet reveals moderate leverage and equity inefficiency, while cash flow improvements highlight better cash management. Overall, the company must address profitability and operational efficiency to strengthen financial performance.
Income Statement
45
Neutral
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
40
Negative
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
60
Neutral
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
32.16B16.75B14.40B3.77B709.39M
Gross Profit
2.69B80.47M-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 SheetCash, Cash Equivalents and Short-Term Investments
20.72B15.47B10.98B8.53B733.13M
Total Assets
37.65B28.45B21.63B15.32B3.88B
Total Debt
2.71B2.75B6.56B2.77B3.42B
Net Debt
-3.67B-8.98B-3.28B-4.22B2.78B
Total Liabilities
27.58B15.96B11.90B6.08B4.26B
Stockholders Equity
10.07B12.50B9.27B8.84B-667.75M
Cash FlowFree Cash Flow
6.37B-312.89M-3.93B-2.70B-844.25M
Operating Cash Flow
8.47B1.08B-2.28B-862.12M-481.98M
Investing Cash Flow
-13.32B-4.86B-1.51B-3.66B-333.44M
Financing Cash Flow
-503.45M8.55B7.41B10.76B1.15B

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

Technical Analysis Sentiment
Neutral
Last Price54.00
Price Trends
50DMA
54.96
Negative
100DMA
46.91
Positive
200DMA
37.77
Positive
Market Momentum
MACD
-0.54
Positive
RSI
41.62
Neutral
STOCH
17.58
Positive
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 54 is below the 20-day moving average (MA) of 57.51, below the 50-day MA of 54.96, and above the 200-day MA of 37.77, indicating a neutral trend. The MACD of -0.54 indicates Positive momentum. The RSI at 41.62 is Neutral, neither overbought nor oversold. The STOCH value of 17.58 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$6.82B11.052.80%4.32%2.67%-24.92%
52
Neutral
HK$72.20B-24.98%89.72%40.14%
$20.99B7.3024.35%2.04%
$22.71B8.6914.58%2.56%
DEL87
€24.32B24.7012.25%
58
Neutral
HK$137.65B-15.50%49.80%50.02%
41
Neutral
HK$55.97B-239.29%16.59%13.32%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:9863
Zhejiang Leapmotor Technology Co., Ltd. Class H
54.50
26.15
92.24%
GELYF
Geely Automobile Holdings
2.08
0.98
89.09%
GWLLF
Great Wall Motor Co
1.59
0.13
8.90%
DE:L87
Li Auto, Inc. Class A
12.10
3.56
41.69%
HK:9866
NIO Inc. Class A
27.45
-6.60
-19.38%
HK:9868
XPeng, Inc. Class A
73.80
45.45
160.32%

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

Zhejiang Leapmotor Updates Board Changes and AGM Agenda
Jun 10, 2025

Zhejiang Leapmotor Technology Co., Ltd. announced a change in its board of directors, with Mr. Grégoire Olivier continuing as a non-executive director due to changes in his personal circumstances, and Mr. Maxime Picat not being elected as previously proposed. Consequently, the company has withdrawn the related resolution from the agenda of its upcoming Annual General Meeting, while all other resolutions will proceed as planned.

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 2025 Annual General Meeting with Key Resolutions
Jun 3, 2025

Zhejiang Leapmotor Technology Co., Ltd. has announced its upcoming annual general meeting scheduled for June 25, 2025, where several key resolutions will be considered. These include the approval of various reports for the year 2024, such as the board of directors’ report, financial report, and environmental, social, and governance report. Additionally, the meeting will address resolutions regarding profit distribution, directors’ and supervisors’ remuneration, and the appointment of financial auditors and non-executive directors. Special resolutions will also be discussed, including joint liability guarantees for subsidiaries and distributors, and a mandate for the issuance of shares. This meeting is significant for stakeholders as it outlines the company’s strategic and financial direction for the coming year.

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 Board and Supervisor Changes
May 29, 2025

Zhejiang Leapmotor Technology Co., Ltd. announced changes in its board and supervisory positions. Mr. Grégoire Olivier has resigned as a non-executive director due to changes in his work arrangement, and Mr. Maxime Picat has been nominated to replace him, pending shareholder approval. Additionally, Mr. Wu Yefeng has resigned as chairman of the Board of Supervisors for personal career development reasons. Both outgoing members will continue their duties until their successors are appointed at the 2024 annual general meeting. These changes reflect a strategic shift in leadership that may influence the company’s future direction and governance.

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 Invests in Wealth Management Products to Enhance Financial Position
May 23, 2025

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
May 19, 2025

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
May 7, 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
Apr 29, 2025

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
Apr 28, 2025

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
Mar 31, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.