LEAPMOTOR(HK:09863) Haitong Securities·2024-11-15 03:56Investment Rating - The investment rating for the company is "Outperform the Market" [6] Core Views - The company reported a significant improvement in gross margin and a reduction in net loss for Q3 2024, with a gross margin of 8.1%, up 6.9 percentage points year-on-year and 5.3 percentage points quarter-on-quarter [5][6] - The company achieved record-high vehicle deliveries in Q3 2024, with 86,000 units delivered, representing a 94% year-on-year increase and a 62% quarter-on-quarter increase [7] - The company is expanding its global presence, having launched models in Europe and established a comprehensive partnership with Stellantis [8] Summary by Sections Financial Performance - For Q3 2024, the company reported revenue of 9.86 billion yuan, a 74% increase year-on-year and an 84% increase quarter-on-quarter [6] - The net loss for Q3 2024 was 690 million yuan, down from 990 million yuan in Q3 2023 and 1.2 billion yuan in Q2 2024, indicating a narrowing loss [5][6] Sales and Delivery - The sales structure improved, leading to a quarter-on-quarter increase in average revenue per vehicle, estimated at approximately 114,000 yuan, which is a 1.4% increase from the previous quarter [7] - The sales volume for different models in Q3 2024 was as follows: T03 (17,000 units), C10 (5,000 units), C11 (21,000 units), C16 (22,000 units), and others [7] Global Expansion - The company has completed EU WVTA certification for models C10 and T03, officially launching in Europe in September 2024 [8] - As of October 2024, the company has opened 339 dealerships in Europe, all equipped for sales and after-sales services, with plans to expand into Asia-Pacific, the Middle East, Africa, and South America by 2025 [8] Profitability Forecast - The company forecasts sales of 287,000 and 518,000 units for 2024 and 2025, respectively, with projected revenues of 33.3 billion and 59.1 billion yuan [9] - The estimated net profit for 2024 is projected to be -3.4 billion yuan, improving to -213 million yuan in 2025, and turning positive with a net profit of 1.3 billion yuan in 2026 [10][12]