LEAPMOTOR(HK:09863) Changjiang Securities·2024-10-15 10:38Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company plans to introduce strategic investments from government-backed capital in Jinhua, Hangzhou, and other regions, which is expected to enhance its future growth [6][7]. - The company has signed agreements for domestic share subscriptions with various government-backed funds, indicating confidence in its future development [6]. - The total expected capital increase is 2.6 billion RMB, primarily aimed at research and development of new vehicle models and upgrading existing ones [6]. Summary by Sections Event Description - On October 9, the company entered into domestic share subscription agreements with multiple government-backed entities, aiming to enhance its growth trajectory [6]. Event Commentary - The strategic investment is expected to increase the shareholding ratio by approximately 5%, with a subscription price of 40.80 HKD per share, reflecting a premium of about 29% over the closing price on October 9 [6]. - The funds raised will be allocated primarily for R&D (approximately 75%) and operational capital (approximately 25%) [6]. Domestic and Overseas Growth - The company is experiencing a strong domestic new car cycle, which is driving continuous sales growth, with expectations of reaching sales of 280,000, 500,000, and 640,000 vehicles from 2024 to 2026 [7]. - The partnership with Stellantis is expected to facilitate international expansion with a focus on low initial investment and rapid market entry [7].