LEAPMOTOR(HK:09863) Ge Long Hui·2026-02-26 05:06Core Viewpoint - Leapmotor has emerged as a leading player in the domestic new energy vehicle market, achieving significant sales growth and recognition from both peers and investors [1] Domestic Market - Leapmotor's sales projections for 2023-2025 are 140,000, 290,000, and 600,000 vehicles, respectively, with a goal to become the sales champion among new forces by 2025 [1] - The company's competitive advantage is driven by extreme cost control, which is supported by three main strategies: 1. Collaboration with Dahua to enhance electronic and intelligent capabilities [1] 2. Efficient vertical integration of the supply chain, allowing for in-house development of key components [1] 3. A platform strategy that leverages scale effects to reduce R&D and procurement costs [1] - Leapmotor plans to launch the A+D series models in 2026 to expand its product matrix, with expected sales of 600,000, 1,010,000, and 1,280,000 vehicles from 2025 to 2027, representing year-on-year growth of 105%, 69%, and 28% [1] International Expansion - Leapmotor has partnered with Stellantis, which invested €1.5 billion for approximately 20% equity, to establish a joint venture "Leapmotor International" for overseas operations and sales [2] - Stellantis, as the fourth largest global automotive manufacturer, will aid Leapmotor in rapidly expanding its overseas market presence [2] - The company aims to export 100,000 to 150,000 vehicles by 2026, positioning itself as a leading new force in international markets [2] Profitability Outlook - Leapmotor is expected to reach a profitability turning point this year, with high cost-performance strategies driving significant sales success [2] - Compared to traditional automakers like BYD and Geely, Leapmotor has established three major cost advantages, particularly in product definition and supply chain systems [2] - Projections for single vehicle gross profit are estimated at ¥16,000, ¥17,000, and ¥19,000 for 2026-2027, with total net profits expected to reach ¥630 million, ¥5.17 billion, and ¥8.7 billion [2] Investment Recommendations - Leapmotor's domestic sales advantages are recognized, with expectations for continued growth this year [3] - The collaboration with Stellantis is anticipated to boost both export and credit income [3] - Revenue projections for 2025-2027 are ¥65.3 billion, ¥114.8 billion, and ¥151.7 billion, with net profits expected to grow significantly [3] - A relative valuation method suggests a target price of HKD 61.44 for 2026, indicating a potential upside of 37% [3]