LEAPMOTOR(HK:09863) SINOLINK SECURITIES·2024-08-18 02:09Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [1][4]. Core Insights - The company, Li Auto, has shown strong performance in Q2 2024, with vehicle deliveries reaching 53,286 units, representing a year-on-year increase of 56.8% and a quarter-on-quarter increase of 59.5% [1][2]. - Revenue for Q2 2024 was 5.36 billion yuan, reflecting a year-on-year growth of 22.6% and a quarter-on-quarter growth of 53.7% [1][2]. - The report highlights the company's refined management capabilities and its strategic partnership with Stellantis for overseas expansion as key differentiators [1][2]. - Despite the positive performance, the report notes that industry competition is intensifying and market demand may not meet expectations [1][2]. Summary by Sections Financial Performance - Q2 2024 gross profit was 148 million yuan, with a gross margin of 2.8%, showing improvements compared to the previous year [1][2]. - The report calculates a Q2 2024 average selling price (ASP) of 100,600 yuan per vehicle, which is a decrease of 21.8% year-on-year and 3.6% quarter-on-quarter [1][2]. - The net profit attributable to the parent company for H1 2024 was -2.21 billion yuan, a year-on-year decline of 2.8% [2]. Cost Structure - R&D, sales, and administrative expenses for Q2 2024 were 700 million, 480 million, and 300 million yuan respectively, with significant year-on-year increases of 70.6%, 11.2%, and 157.4% [2]. - The report indicates that the company's cost structure is under pressure due to increased competition and discount policies [1][2]. Future Outlook - The report emphasizes the strong profitability potential of the company, driven by scale effects and new vehicle launches, particularly the flagship C16 model [1][2]. - The overseas expansion strategy is expected to contribute significantly to net profit by 2025-2026, with projected overseas sales of 80,000 units potentially generating around 1.1 billion yuan in investment returns [1][2].