LEAPMOTOR(HK:09863) Changjiang Securities·2024-08-09 02:01Investment Rating - The investment rating for the company is "Buy" [7] Core Insights - The company focuses on self-research and development to create cost advantages, resulting in an exceptional price-performance ratio. It covers a price range of 50,000 to 200,000 CNY, achieving sales of 144,000 vehicles in 2023, ranking third among new forces in the industry. Future growth is expected from the domestic new car cycle and international expansion through collaboration with Stellantis [2][4][6]. Summary by Sections Company Overview - Founded in 2015, the company has rapidly grown, with a compound annual growth rate (CAGR) of over 200% in revenue and sales from 2019 to 2023. In 2023, it achieved a revenue of 16.7 billion CNY, a year-on-year increase of 35.2%, and a sales volume of 144,000 vehicles, up 30.1% year-on-year [4][43]. Product and Market Position - The company’s product lineup includes microcars, sedans, and SUVs, primarily in the 50,000 to 200,000 CNY price range. The C-series models have significantly improved the product structure, with a single vehicle revenue of 116,200 CNY in 2023, a 3.9% increase year-on-year. The company’s market share in the pure electric segment reached 4.3% in the first five months of 2024, up 1.2 percentage points from 2023 [5][49]. Financial Performance - The company achieved a gross margin of 0.5% in 2023, marking its first positive gross margin, and net operating cash flow turned positive. The financial indicators show solid improvement, with expectations for further enhancement in single vehicle revenue and profitability as the domestic sales structure improves and international expansion takes shape [4][44][56]. Strategic Partnerships - The collaboration with Stellantis allows the company to leverage global resources for a light-asset international expansion strategy. This partnership is expected to enhance competitiveness in the European market, where the demand for new energy vehicles is growing [6][10]. Future Outlook - The company plans to launch 2-3 new models annually, with expectations for sales to reach 250,000, 400,000, and 480,000 vehicles in 2024, 2025, and 2026, respectively. The ongoing new car cycle and the strategic partnership with Stellantis are anticipated to drive sustained growth [6][10].