LEAPMOTOR(HK:09863) Soochow Securities·2024-08-20 17:07Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's Q2 2024 performance met expectations, with total revenue of 5.359 billion yuan, reflecting a quarter-on-quarter increase of 22.6% and a year-on-year increase of 53.7% [3] - The company reported a single-quarter loss of 1.199 billion yuan, which is a larger loss compared to previous quarters [3] - The average selling price (ASP) decreased to 101,000 yuan per vehicle due to a higher proportion of lower-priced models sold [3] - The gross margin for Q2 was 2.8%, aligning with company guidance, and is expected to improve in the coming months [3] - The company is focusing on both domestic market penetration and global expansion, with plans to establish over 200 sales outlets in Europe by the end of 2024 [4] Financial Summary - Total revenue projections for the company are as follows: 2023A: 16,747 million yuan, 2024E: 28,278 million yuan, 2025E: 60,467 million yuan, and 2026E: 83,838 million yuan, indicating significant growth [2] - The adjusted net profit forecasts have been revised down to -4.23 billion yuan for 2024, -1.13 billion yuan for 2025, and a positive 1.63 billion yuan for 2026 [4] - The company’s cash flow from operating activities is projected to be -5.784 billion yuan in 2024, indicating a challenging cash flow situation [9] Market Position and Strategy - The company is enhancing its focus on smart technology, having established a smart technology research institute and expanded its autonomous driving research team [4] - The company plans to showcase its first global model, the B10, at the Paris Auto Show in October 2024, which will utilize its latest technology architecture [4] - The company aims to maintain a gross margin target of 5% for the year despite current challenges [3]