LEAPMOTOR(09863) 长江证券·2024-11-15 03:16Investment Rating - Buy rating maintained for Leapmotor (9863 HK) [8] Core Views - Leapmotor's Q3 2024 results exceeded expectations, with gross margin improvement and record high per-vehicle profitability driven by product mix optimization and economies of scale [1][3][4] - The company achieved revenue of RMB 9 86 billion in Q3 2024, up 74 3% YoY, with net loss narrowing to RMB -6 9 billion [3] - Q3 2024 sales reached 86,000 units, approaching H1 2024 cumulative sales, with monthly sales hitting new highs [3] - Gross margin improved to 8 1% in Q3 2024, up 6 9pct YoY and 5 3pct QoQ, with per-vehicle gross profit reaching RMB 0 9 million, a historical high [4] - The company is entering a strong new product cycle globally, with plans to launch 2-3 new models annually over the next three years [5] Business Performance - Q3 2024 sales increased 94 4% YoY and 61 7% QoQ to 86,000 units, with July-September sales of 22,000, 30,000, and 34,000 units respectively [3] - Revenue per vehicle was RMB 114,000 in Q3 2024, down RMB 13,000 YoY but up RMB 14,000 QoQ due to increased C-series contribution (78 3% of sales) [3] - October 2024 orders exceeded 40,000 units, indicating strong momentum for Q4 2024 [3] - Sales and administrative expense ratio decreased to 9 0% in Q3 2024, down 2 5pct YoY and 5 4pct QoQ [4] - R&D expense ratio was 7 9% in Q3 2024, down 0 5pct YoY and 5 2pct QoQ [4] Product and Market Strategy - Leapmotor covers the RMB 50,000-200,000 price segment and has expanded internationally with T03 and C10 models [5] - The company plans to launch 3 B-series models in 2025, priced between RMB 100,000-150,000, including the compact SUV B10 in Q1 2025 [5] - Domestic sales network includes 493 sales outlets and 362 service centers across 204 cities as of September 2024 [5] - International presence includes 339 European outlets as of October 2024, with plans to exceed 500 global outlets by 2025 [5] - The company is accelerating autonomous driving development, planning to expand its team to 500 by end-2024 and introduce advanced ADAS features on the LEAP 3 5 platform in H1 2025 [5] Growth Outlook - Domestic growth driven by strong new product cycle and competitive pricing, with scale effects and product mix optimization expected to boost profitability [6] - International expansion through partnership with Stellantis enables asset-light overseas growth with low initial investment and rapid deployment [6] - Sales forecasts: 300,000 units in 2024, 500,000 units in 2025, and 750,000 units in 2026 [6]