LEAPMOTOR(HK:09863) Xin Lang Cai Jing·2025-10-20 09:40Core Viewpoint - Leap Motor's chairman and CEO, Zhu Jiangming, along with shareholder Fu Liqian, completed a new round of share buybacks at an average price of HKD 63.19 per share, totaling HKD 850 million, marking Zhu's third buyback in two years [3][4]. Group 1: Share Buyback and Market Signals - The recent buyback is seen as a strategic move amidst a "price war" in the electric vehicle industry, signaling confidence in the company's future [3][4]. - Management buybacks typically indicate intentions to repair market value discrepancies and stabilize stock volatility, while also reserving space for future financing and acquisitions [3][4]. Group 2: Financial Health and Growth - Analysts suggest that the combination of financing and buybacks indicates three key signals: healthy cash flow to support technology investment and capacity expansion, stable equity structure with no short-term cash-out pressure on the founding team, and strong confidence in future profitability [4]. - Leap Motor reported its first half-year net profit in 2025, with a gross margin of 14.1%, becoming the second profitable "new force" car manufacturer [4]. Group 3: Delivery and Market Position - In the first three quarters of 2025, Leap Motor delivered nearly 400,000 vehicles, leading the "new force" rankings for seven consecutive months, with a record monthly delivery of over 60,000 units in September [5]. - The company celebrated the production of its one-millionth vehicle, becoming the second "new force" car manufacturer in China to reach this milestone [5]. Group 4: Technological and Product Development - Leap Motor's strategy has led to a clearer understanding of its "technology-product-cost" triangle, achieving scale effects through self-research and development [6]. - The company has developed a complete product matrix covering price ranges from 50,000 to 300,000 yuan, enhancing its competitive edge through supply chain innovations [6]. Group 5: High-End Market Entry - On October 16, 2025, Leap Motor launched its flagship model D19, marking its entry into the high-end market with a price strategy targeting the 300,000 yuan range while competing in the 400,000 to 500,000 yuan profit zone [8]. - The D19 integrates self-developed electric drive systems with top-tier suppliers' chassis technologies, aiming for performance enhancement while maintaining cost control [8]. Group 6: Long-Term Vision - Zhu Jiangming emphasized the company's commitment to the philosophy of "good but not expensive," suggesting a sustainable approach to balancing technology, cost, and market dynamics [9]. - The company aims to demonstrate that there is a viable path in the electric vehicle sector that does not rely solely on brand premium but instead focuses on technological innovation and cost management [9].