LEAPMOTOR(09863) 天风证券·2025-02-11 12:36Investment Rating - The report assigns a "Buy" rating for the company, with a target price of 41.14 HKD, indicating a potential upside from the current price of 35.35 HKD [4]. Core Insights - The company is positioned to benefit from a new vehicle cycle and scale effects in the domestic market, with a high self-manufacturing rate of core components at 70%, enhancing cost control and product competitiveness [1][2]. - The partnership with Stellantis is expected to accelerate international expansion, particularly in the European market, where the company aims to offer affordable electric vehicles [2][3]. - Financial forecasts indicate a positive trajectory, with expectations of achieving profitability by Q4 2024 and a gross margin of no less than 8% in 2024 [1][4]. Summary by Sections Domestic Business - The company has a strong self-research advantage, with a self-manufacturing rate of 70% for core technologies, covering various aspects such as vehicle architecture, electronic architecture, batteries, and intelligent driving [1][14]. - The product lineup targets the 50,000 to 200,000 RMB market, with models like C01, C11, T03, C16, and C10, showcasing a rich and expandable matrix [1][18]. - Financial improvements are anticipated, with projections of revenues reaching 316 billion, 550 billion, and 840 billion RMB from 2024 to 2026, respectively [4][23]. International Business - The collaboration with Stellantis, which invested 1.5 billion euros for a 20% stake, aims to establish a joint venture named "Leapmotor International" to handle overseas operations [2][26]. - The partnership is designed to leverage Stellantis's extensive distribution channels in Europe, enhancing the company's market penetration [3][31]. Product Strategy - The company plans to launch new models, including the B series targeting the 100,000 to 150,000 RMB market and the D series for the 200,000 to 300,000 RMB segment, further diversifying its offerings [1][21]. - The C10 and T03 models are set to be launched in Europe in September 2024, with competitive pricing aimed at capturing market share [3][22]. Financial Projections - The report forecasts a steady increase in delivery volumes driven by new models, with expectations of a significant leap from gross margin to net margin [4][23]. - The current market valuation is below the industry average, suggesting substantial room for valuation improvement as the company transitions to a more favorable financial position [4][23].