LEAPMOTOR(09863) 东方财富·2024-09-27 00:53Investment Rating - The report maintains a "Buy" rating for Leapmotor (09863 HK) [3] Core Views - Leapmotor has significantly improved profitability and increased R&D investment in new models The company achieved positive gross margin for the first time in Q3 2023 at 1 2% and reached 6 7% in Q4 2023 [2] - The company has optimized its product matrix with a dual powertrain strategy (BEV+EREV) and plans to launch 7 new models by 2026 including B-series and D-series vehicles [2] - Leapmotor's global expansion strategy with Stellantis is expected to drive overseas growth with plans to enter European Middle Eastern and African markets starting September 2024 [2][4] Financial Performance - In H1 2024 Leapmotor achieved revenue of 8 845 billion yuan a 52% YoY increase with a net loss of 2 212 billion yuan mainly due to increased R&D expenses for new models and smart driving technology [2] - The company's gross margin improved to 1 13% in H1 2024 compared to negative margins in previous years [2] - Revenue is projected to grow significantly from 31 796 billion yuan in 2024 to 75 573 billion yuan in 2026 with gross margins expected to reach 13% by 2026 [4][7] Product Strategy - Leapmotor currently offers 5 models priced between 100 000-200 000 yuan with C-series models accounting for 72% of deliveries in H1 2024 [2][18] - The company plans to launch 3 B-series models priced at 100 000-150 000 yuan by 2025 and 3 D-series models around 200 000 yuan by 2026 [2][16] - Leapmotor's C16 model a 6-seat SUV priced under 200 000 yuan achieved over 10 000 orders in its first month of launch [59] Technology and R&D - Leapmotor has developed six core technology platforms including vehicle architecture electronic electrical architecture intelligent powertrain intelligent battery intelligent cockpit and intelligent driving [25] - The company's self-developed CTC 2 0 battery technology achieves a volume utilization rate of 79% and reduces weight by 15% compared to traditional designs [32] - Leapmotor's Leapmotor OS 3 0 intelligent cockpit system is powered by the Qualcomm Snapdragon 8295 chip offering 30TOPS of AI computing power [40] Overseas Expansion - Leapmotor International a joint venture with Stellantis plans to launch C10 and T03 models in 9 European countries starting September 2024 [60] - The company aims to establish 200 sales outlets by the end of 2024 and expand to 500 outlets by 2026 [61] - Overseas sales are projected to grow from 10 000 units in 2024 to 120 000 units in 2026 [7] Market Position - Leapmotor is positioned as a technology-driven new energy vehicle manufacturer with full-stack self-research capabilities [4] - The company's "China market + overseas market + Tier 1" strategy aims to expand from vehicle manufacturing to component supply leveraging its cost advantages and technological capabilities [8]