LEAPMOTOR(HK:09863) ZHONGTAI SECURITIES·2024-08-19 10:42Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative performance increase of over 15% compared to the benchmark index within the next 6 to 12 months [12]. Core Insights - The company reported a revenue of 8.845 billion yuan for the first half of 2024, reflecting a year-on-year increase of 52.2%, while the net profit attributable to shareholders was -2.212 billion yuan, showing slight improvement [3]. - The company is experiencing continuous improvement in sales and gross margin, with Q2 2024 revenue reaching 5.359 billion yuan, a year-on-year increase of 22.6% and a quarter-on-quarter increase of 53.7%. The gross margin for Q2 2024 was 2.8%, up 8 percentage points year-on-year [4]. - The company is significantly increasing its investment in smart driving technology, with R&D expenses in Q2 2024 amounting to 701 million yuan, a year-on-year increase of 70.7% [5]. - The partnership with Stellantis is deepening, with nearly 2,000 units of the C10 and T03 models shipped to Europe, and plans to expand sales outlets in Europe by over 200 by the end of 2024 [6]. Financial Forecast and Valuation - Revenue projections for the company are as follows: 32.539 billion yuan in 2024, 64.610 billion yuan in 2025, and 88.200 billion yuan in 2026, with growth rates of 94.3%, 98.6%, and 36.5% respectively [8][10]. - The net profit forecast shows a loss of 3.405 billion yuan in 2024, a profit of 0.980 billion yuan in 2025, and a profit of 2.086 billion yuan in 2026 [8][10]. - The company’s price-to-book (P/B) ratio is projected to be 2.9 in 2024 and 2.4 in 2026, indicating a potential valuation adjustment as profitability improves [8]. Key Financial Metrics - The company’s total revenue for 2023 is projected at 16.747 billion yuan, with a significant increase to 88.200 billion yuan by 2026 [8]. - The earnings per share (EPS) is expected to improve from -3.15 yuan in 2024 to 1.56 yuan in 2026 [8][10]. - The return on equity (ROE) is projected to turn positive at 20% by 2026, indicating a recovery in profitability [8].