Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 45, corresponding to a market capitalization of HKD 595 billion, based on a 1x 2025 estimated price-to-sales ratio [4][5]. Core Insights - The company achieved impressive sales performance in Q3, delivering 86,165 vehicles, representing a year-on-year growth of 94% and a quarter-on-quarter growth of 62%. Revenue for Q3 increased by 74.3% to RMB 9.86 billion, driven by the introduction of higher-priced models and improved cost management [1][2]. - The gross margin for Q3 significantly exceeded expectations, rising to 8.1%, a year-on-year increase of 6.9 percentage points, with gross profit doubling to approximately RMB 800 million [1][3]. - The company is expected to exceed its annual sales target of 250,000 vehicles, with Q4 sales projected to surpass 110,000 units due to ongoing trade-in policies and new model launches [2][3]. Summary by Sections Sales Performance - In Q3, approximately 78.3% of the vehicles sold were from the C series, indicating an improved product mix. Monthly sales have shown consistent growth, with October sales reaching 38,177 units [2]. - The company plans to launch three new B series models in 2025, which are expected to contribute significantly to sales growth [2]. Production Capacity - The current production capacity at the Jinhua factory is nearly maxed out at around 40,000 units per month. A new factory in Hangzhou is under construction, aiming for production in the first half of 2025, with plans for a third factory to be operational by late 2025 or early 2026 [2][3]. Financial Projections - The company anticipates achieving a gross margin of over 5% for the full year, with Q1-Q3 gross margin averaging 4.8%. Projections for 2025 suggest an average gross margin of around 9% [3][4]. - Revenue forecasts for 2024-2026 are estimated at RMB 32.24 billion, RMB 55.05 billion, and RMB 81.72 billion, respectively, with net profit margins expected to improve from -9% in 2024 to 2% in 2026 [4][10]. Market Expansion - The company has set an overseas sales target of 8,000 to 12,000 units for 2024, with plans for localized production in Europe by the end of 2025. The establishment of 339 dealerships in Europe has already surpassed initial targets [3][4].

Summary of Leap Motor's Conference Call Company Overview - **Company**: Leap Motor (零跑汽车) - **Industry**: Electric Vehicles (EV) Key Financial Performance - **Q3 2024 Deliveries**: 86,165 units, a 61% increase quarter-over-quarter and a 94% increase year-over-year [2][3] - **Revenue**: 9.86 billion RMB, an 84% increase quarter-over-quarter and a 74% increase year-over-year [2][3] - **Gross Margin**: Improved to 8.1%, up from an average of 4.8% for the first nine months of the year [2][3] - **Net Loss**: 690 million RMB, but operating cash flow increased to 1.96 billion RMB, with cash reserves at 18.7 billion RMB [2][4] Product and Sales Strategy - **C Series Models**: Increased sales proportion from 72% in Q1 to 78% in Q3, with total sales of 172,800 units in the first three quarters [2][5] - **October Sales**: 38,100 units sold, with over 40,000 orders received, including over 10,000 for models C11, C10, and C16 [2][5] - **B Series Launch**: First compact SUV B10 debuted at the Paris Auto Show on October 14, expected to launch in China by Q1 2025 [2][6] Research and Development - **R&D Investment**: Increased focus on R&D, with OTA upgrades enhancing smart cockpit features and AI capabilities [2][7] - **Engineering Team**: Over 400 engineers working on end-to-end AI model systems, with plans to expand to 500 by year-end [2][7] Channel Expansion - **Sales Network**: 493 sales stores and 362 service centers in China as of September, with 339 dealerships in Europe by the end of October [2][8][9] - **Future Plans**: Expecting to exceed 700 sales stores and 400 service centers by year-end [2][8] Future Projections - **Q4 Expectations**: Anticipated significant sales growth, with a target of 40,000 units per month next year and an annual goal of over 500,000 units [2][10] - **Gross Margin Target**: Aiming for over 10% gross margin next year through economies of scale and cost reduction measures [2][10] Production Capacity - **Current Capacity**: Two factories in Jinhua with a total capacity of 40,000 vehicles per month, fully utilized [2][11] - **New Factory Plans**: A new factory in Hangzhou is under construction, expected to be operational in H1 2025 [2][11] International Strategy - **European Market Entry**: Rapid expansion with 339 dealerships established, focusing on local production to mitigate tariffs [2][13][23] - **Localization Plans**: Collaborating with the Land Group for local manufacturing to meet EU regulations and reduce costs [2][22][23] Market Dynamics - **Geopolitical Challenges**: Increased tariffs impacting profitability, but long-term electric vehicle trends remain favorable [2][16][17] - **Consumer Preferences**: Positive reception of models T03 and C10 in Europe, with strong demand for electric vehicles [2][15][19] Conclusion Leap Motor is experiencing robust growth in deliveries and revenue, with strategic plans for product diversification, channel expansion, and international market penetration. The company is focused on enhancing its R&D capabilities and localizing production to navigate geopolitical challenges while aiming for significant sales and margin improvements in the coming years.

Investment Rating - The report maintains a "Buy" rating for Leap Motor (9863.HK) and raises the target price to HKD 43.2, indicating a potential upside of 27% [1][5]. Core Insights - Leap Motor's Q3 automotive sales saw significant growth, with a notable improvement in gross margin. The company anticipates reaching a sales target of 500,000 new energy vehicles next year, driven by new models and overseas sales growth [1][2]. - The current price-to-sales ratio for Leap Motor is 0.9x, which is considered attractive compared to other comparable new energy vehicle manufacturers [1][3]. Summary by Sections Financial Performance - In Q3, Leap Motor achieved revenue of RMB 9.86 billion, a year-on-year increase of 74% and a quarter-on-quarter increase of 84%. The gross margin for Q3 was 8.1%, up 6.9 percentage points year-on-year and 5.3 percentage points quarter-on-quarter [2][8]. - The company expects continued improvement in gross margin in Q4, potentially exceeding the annual target of 5% [2][3]. Sales and Production Outlook - Leap Motor's sales target for next year is set at 500,000 units, with a gross margin target of 10%. The average selling price of vehicles is expected to improve due to increased sales of the C16 model [3][9]. - The company plans to launch three new B-series models next year, with the B10 expected to start deliveries in April [3][4]. Valuation - The valuation is based on a sum-of-the-parts approach, applying a price-to-sales ratio of 0.9x for automotive sales and 2.0x for services and other income, leading to a target price of HKD 43.2 [3][10]. - The report highlights that Leap Motor's historical average price-to-sales ratio since its listing is 0.9x, indicating that the current valuation is in line with historical performance [11].

新消费日报 11月12日讯， 今日新消费日报的主要内容有：问界M9累计大定超17万辆；10月汽车出口 54.2万辆 同比增长11.1%；10月国内新能源汽车销量143万辆。 行业要闻 极氪7X车型交付量超2万 11月11日，极氪宣布，极氪7X上市50天交付超2万台。据了解，极氪旗下中型SUV——极氪7X于9月20 日正式上市，新车共推出3款配置车型，售价区间为22.99万至26.99万元。 唯品会双11女士夹克销量同比增长72% 唯品会11.11特卖狂欢节数据显示，秋冬服饰仍是双11的C位，女士针织衫、女士外套、女士羽绒服等位 居服饰消费前列，女士夹克销量同比增长72%，女士棉衣、女士羊毛衫销量同比增长50%以上。男士外 套销量同比增长30%以上。 小鹏MONA 03正式开放官方改色服务 11月11日，小鹏汽车董事长何小鹏宣布，小鹏MONA 03正式开放官方改色服务，售价2990元起，支持 积分兑换。 亚瑟士前三季度销售额涨17.3% 近日，日本运动品牌亚瑟士Ascis发布2024年前三季度财务数据。财报显示，2024年前三季度，亚瑟士 销售额增长了17.3%，达到5254亿日元（约合246亿元人民币）；毛利 ...

Financial Data and Key Metrics Changes - In Q3 2024, the company delivered 86,165 vehicles, representing a 61% increase quarter-over-quarter and a 94% increase year-over-year [2][3] - Revenue for Q3 reached 9.86 billion RMB, an 84% increase from the previous quarter and a 74% increase year-over-year [3][4] - Gross margin improved significantly to 8.1% in Q3, compared to 2.8% in Q2, with an average gross margin of 4.8% for the first nine months [5][6] - The net loss narrowed to 690 million RMB, showing substantial improvement compared to previous quarters [5][6] - The company reported a positive cash flow of 1.96 billion RMB in Q3, with cash reserves totaling 18.7 billion RMB [3][5] Business Line Data and Key Metrics Changes - The C series models accounted for 78.3% of total deliveries in Q3, indicating a continuous optimization of the product mix [2][3] - The company achieved a total sales volume of 172,800 vehicles in the first nine months of 2024 [3][4] Market Data and Key Metrics Changes - The company expanded its domestic sales network to 493 sales outlets and 362 service centers by the end of September 2024 [3][4] - In Europe, the number of dealer outlets reached 339 by the end of October 2024, indicating a strong international presence [3][4] Company Strategy and Development Direction - The company plans to launch the new B series models, with the first model, B10, debuting at the Paris Auto Show and expected to be available in the domestic market by Q1 2025 [7][8] - The B series aims to target the compact SUV market priced between 100,000 to 150,000 RMB, which is a significant segment in China [7][8] - The company is focusing on maximizing platform sharing and integrating advanced technologies in its new models [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining strong sales momentum, with expectations to exceed the annual sales target of 250,000 vehicles [9][10] - The company anticipates continued improvement in gross margins and a further reduction in net losses in Q4 2024 [9][10] - Management acknowledged challenges posed by geopolitical factors affecting the European market but remains committed to localizing production to enhance competitiveness [19][20] Other Important Information - The company is investing in R&D for AI and smart driving technologies, with plans to enhance its product offerings with advanced features [8][28] - The company aims to expand its sales channels to over 700 domestic sales outlets and 400 service centers by the end of 2024 [8][9] Q&A Session Summary Question: What are the latest sales and gross margin guidance? - Management expects significant sales growth in Q4, with a gross margin improvement anticipated [11][12] Question: What is the production capacity planning for the B series? - The company is working on expanding production capacity, with plans for a new factory in Hangzhou to support the B series [14][15] Question: How is the company addressing the challenges in the European market? - Management highlighted the importance of localization to mitigate the impact of tariffs and enhance competitiveness in Europe [19][20] Question: What is the expected contribution of the B series to overall sales? - The B series is expected to significantly boost sales, with a target of reaching over 500,000 units in the next two years [12][13] Question: How does the company plan to compete in the smart driving segment? - The company is focusing on integrating advanced AI technologies and enhancing its smart driving capabilities in upcoming models [28][29]

Financial Performance - Revenue for Q3 2024 reached RMB 9.86 billion, an 83.9% quarter-over-quarter increase and a 74.3% year-over-year increase, driven by significant growth in product deliveries and optimized sales structure[1] - Gross margin improved to 8.1% in Q3 2024, up from 2.8% in Q2 2024, due to optimized product sales structure, cost management, and economies of scale[2] - Net loss attributable to equity holders narrowed to RMB 690 million in Q3 2024, compared to RMB 990 million in the same period last year[2] - Operating cash flow for Q3 2024 was RMB 1.96 billion, with free cash flow reaching RMB 1.32 billion, and both are expected to remain positive in Q4[2] - Q3 2024 revenue reached RMB 9.86 billion, a 74.3% increase year-on-year and an 83.9% increase quarter-on-quarter[11] - Q3 2024 gross margin improved to 8.1%, up from 1.2% in Q3 2023 and 2.8% in Q2 2024[12] - Q3 2024 R&D expenses increased to RMB 780 million, up 64.9% year-on-year and 11.4% quarter-on-quarter[13] - Q3 2024 operating loss narrowed to RMB 740 million, compared to RMB 1.03 billion in Q3 2023 and RMB 1.27 billion in Q2 2024[14] - Q3 2024 free cash flow improved to RMB 1.32 billion, up from RMB 1.02 billion in Q3 2023 and RMB 1.01 billion in Q2 2024[16] Vehicle Deliveries and Sales - Vehicle deliveries in Q3 2024 totaled 86,165 units, a 61.7% quarter-over-quarter increase and a 94.4% year-over-year increase, with C-series models accounting for 78.3% of sales[3] - Net orders in October 2024 exceeded 40,000 units, with C-series products accounting for over 80% of orders[11] - October 2024 sales reached 38,177 units, a year-on-year increase of 109.7%[11] Product Development and Technology - C10 and C16 models, launched in 2024, feature advanced technologies such as the LEAP 3.0 architecture, Qualcomm SA 8295P chip, and high-performance autonomous driving capabilities[4][5] - The B10 model, unveiled at the Paris Motor Show, is set to launch in Q1 2025 and will be based on the LEAP 3.5 architecture, targeting the RMB 100,000-150,000 market segment[6] - The company completed multiple OTA updates in Q3 2024, adding and optimizing over 80 features across LEAP 2.0 and LEAP 3.0 architectures, including AI-powered voice assistants and advanced autonomous driving functions[7] - R&D efforts are focused on developing an "end-to-end AI model" for autonomous driving, with plans to expand the R&D team to 500 engineers by the end of 2024[8] Sales and Service Network - Sales channels covered 204 cities with 493 sales outlets and 362 service outlets as of September 2024[9] - 339 dealerships with sales and after-sales services opened in Europe by October 2024, with plans to expand to over 500 dealerships by 2025[10] Milestones and Achievements - The company achieved a milestone of 500,000 cumulative vehicle productions by October 17, 2024[3] Forward-Looking Statements - The company has made forward-looking statements regarding future financial conditions, strategies, plans, objectives, targets, and market developments, identified by terms such as "will," "expect," "anticipate," "aim," "future," "intend," "plan," "believe," "estimate," and "may"[19] - These forward-looking statements are based on assumptions about the company's current and future business strategies and the future business environment[19] - The forward-looking statements involve known and unknown risks, uncertainties, and other factors, some of which are beyond the company's control, potentially leading to significant differences between actual results and those implied or expressed in the statements[19] - The company does not undertake any obligation to update any forward-looking statements except as required by applicable law[19] - Shareholders and potential investors are advised to exercise caution when trading the company's shares[19]

证券时报e公司讯，据零跑汽车消息，10月交付达38177台，同比增长109.7%，连续创造月交付新高。 10月份，零跑汽车订单量同样刷新记录，单月订单量超过42000，C10、C11、C16三车型订单全部过 万。 同时，全新B系列首款车型零跑B10将于11月广州车展开启国内首秀。 ...

Investment Rating - The report maintains a "Buy" rating for Leapmotor [1] Core Views - Leapmotor is leveraging partnerships with overseas giants to enhance its international presence, particularly through the establishment of Leapmotor International in collaboration with Stellantis, which holds a 49% stake [2][19] - The company is set to launch its models C10 and T03 in Europe by September 2024, with plans for further product introductions in the coming years [2][26] - Leapmotor's strategy focuses on high efficiency across production capacity, distribution channels, and after-sales service, utilizing Stellantis's existing resources to mitigate risks and enhance operational efficiency [2][31] Summary by Sections Export Model - Leapmotor is forming a unique business model by combining Chinese and overseas markets, with Stellantis investing approximately €1.5 billion for a 20% stake in Leapmotor [19] - The establishment of Leapmotor International allows the company to exclusively export and sell vehicles in all markets outside Greater China [19] Core Advantages - Leapmotor is utilizing Stellantis's production facilities in Poland to manufacture electric vehicles, which reduces risks associated with local regulations and enhances production efficiency [2][35] - The company plans to expand its sales network to 350 outlets globally by the end of 2024, with over 200 in Europe, aiming for 500 by 2026 [2][38] - A robust after-sales service system is being developed, leveraging Stellantis's logistics network to ensure quality service for European customers [2][41] Profit Forecast and Investment Advice - The report has adjusted the net profit forecasts for Leapmotor to -3.72 billion, -0.69 billion, and 2.40 billion CNY for 2024 to 2026, reflecting a more optimistic outlook on overseas operations [3] - Leapmotor is expected to achieve a higher valuation compared to its peers due to its strategic positioning in the mainstream electric vehicle market and its clear international expansion strategy [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Viewpoints - The company has launched the new B10 model, a compact SUV targeting the 100,000 to 150,000 RMB market, with a global launch planned for next year [2][5] - The B10 features the industry's only laser radar and 8650 chip for advanced intelligent driving solutions, enhancing both highway and urban navigation capabilities [2][5] - The latest LEAP3.5 technology architecture is utilized in the B10, improving the driving experience with integrated control systems and advanced thermal management [2][5] Financial Summary - The company is projected to achieve net profits of -3.703 billion, -1.086 billion, and 1.052 billion RMB for the years 2024, 2025, and 2026 respectively, with a PE ratio of 32.97 in 2026 [5][8] - Revenue is expected to grow significantly from 16.747 billion RMB in 2023 to 79.932 billion RMB in 2026, reflecting a growth rate of 295.41% in 2023 and 47.47% in 2026 [8][9] - The company's total assets are projected to increase from 28.453 billion RMB in 2023 to 61.780 billion RMB in 2026, indicating strong growth potential [8][9]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company has established significant self-research capabilities in both hardware and software, enhancing its product lineup and opening growth opportunities through international expansion [3][4] - The company has formed a joint venture with Stellantis to facilitate its global strategy, leveraging Stellantis' extensive distribution network [3][4] - Revenue is projected to grow significantly, with expectations of reaching 299.06 billion RMB in 2024, 542.03 billion RMB in 2025, and 799.32 billion RMB in 2026 [4][34] Summary by Sections 1. Self-Research and Product Development - The company, founded in 2015, has developed comprehensive self-research capabilities in core technologies for electric vehicles, including the production of key components and cloud-based solutions [3][8] - The product matrix includes five pure electric models and four extended-range models, with significant delivery growth from 1.7 thousand units in 2021 to 17.3 thousand units in the first nine months of 2024, reflecting a year-on-year increase of 94.6% [8][12] 2. Revenue Growth and Financial Performance - The company’s revenue has increased from 631 million RMB in 2020 to 16.75 billion RMB in 2023, with a 52.16% year-on-year growth in the first half of 2024 [12][13] - The net loss has narrowed from 5.11 billion RMB in 2020 to 2.21 billion RMB in the first half of 2024, indicating improving financial health [12][13] 3. Market Expansion and Sales Network - The company has rapidly expanded its sales network from 49 stores in 2019 to 560 stores by 2023, covering 182 cities [16][17] - The penetration rate of new energy vehicles in China is expected to reach 60.1% by 2026, indicating a favorable market environment for the company [18][19] 4. Strategic Partnerships and Globalization - The partnership with Stellantis involves a joint venture, with Stellantis holding 51% and the company holding 49%, aimed at expanding into international markets [11][30] - The company plans to establish 500 sales points in Europe by the end of 2025 and expand into Asia-Pacific, the Middle East, Africa, and South America starting in the fourth quarter of 2024 [31][32] 5. Financial Projections and Valuation - The company is expected to achieve vehicle sales of 250,000 units in 2024, 440,000 units in 2025, and 630,000 units in 2026, with a corresponding increase in average selling price [33][34] - The projected price-to-sales ratios for 2024, 2025, and 2026 are 1.17, 0.65, and 0.44 respectively, indicating a favorable valuation compared to peers [36][37]