LEAPMOTOR(HK:09863) Guohai Securities·2024-11-13 06:42Investment Rating - The report maintains an "Accumulate" rating for the company [2][5]. Core Insights - The company's Q3 2024 performance shows significant improvement in profitability, with revenue reaching 9.86 billion yuan, representing a year-on-year increase of 74.3% and a quarter-on-quarter increase of 83.9%. The net profit attributable to shareholders narrowed to a loss of 690 million yuan, improving by 300 million yuan year-on-year and 510 million yuan quarter-on-quarter [3]. - The gross margin for Q3 2024 improved to 8.1%, up 6.9 percentage points year-on-year and 5.3 percentage points quarter-on-quarter, driven by increased sales volume and a higher proportion of high-value C series products [3]. - The company achieved a significant increase in sales volume, with Q3 2024 sales reaching 86,200 units, a year-on-year increase of 94.4% and a quarter-on-quarter increase of 61.7%. The C series accounted for 78.3% of total sales in Q3 2024 [3]. Financial Performance Summary - Revenue projections for 2024-2026 are 29.87 billion, 49.24 billion, and 65.08 billion yuan, with year-on-year growth rates of 78%, 65%, and 32% respectively. The net profit attributable to shareholders is projected to be -3.80 billion, -2.74 billion, and 130 million yuan, indicating a trend of narrowing losses and a return to profitability by 2026 [5][6]. - The average selling price (ASP) for vehicles in Q3 2024 was 114,000 yuan, reflecting a quarter-on-quarter increase of 14% due to changes in sales structure [3]. - The company plans to expand its sales network, aiming to exceed 700 sales outlets by the end of 2024, up from 493 outlets as of September 2024 [3].