LEAPMOTOR(HK:09863) SINOLINK SECURITIES·2025-03-11 12:22Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [1]. Core Insights - The company's Q4 performance exceeded expectations, with significant growth in vehicle deliveries and revenue, driven by improved cost efficiency and product mix [2][3]. - The company is expected to launch three new models in 2025, which could further enhance sales and profitability, with a positive outlook for domestic earnings despite potential short-term pressures [3][4]. - The long-term strategy of self-research and supply is expected to continue yielding cost advantages and competitive products, with revenue projections for 2025, 2026, and 2027 at 597 billion, 815 billion, and 1,056 billion RMB respectively [4]. Summary by Sections Financial Performance - In Q4, the company delivered 120,863 vehicles, with revenue reaching 13.455 billion RMB, marking a year-on-year increase of 144.6% [1]. - The average selling price (ASP) per vehicle in Q4 was 111,300 RMB, reflecting a 12.5% increase year-on-year [1]. - For the full year 2024, total vehicle sales are projected at 294,000 units, with revenue of 32.16 billion RMB, representing a 92% year-on-year growth [1]. Cost and Profitability - Q4 gross margin improved to 13.3%, with a net profit of 80 million RMB, marking the first profitable quarter for the company [1]. - The company achieved a significant reduction in vehicle costs, with Q4 unit costs down to 96,500 RMB [2]. - The overall gross margin for 2024 is expected to be 8.4%, an increase of 7.9 percentage points year-on-year [1]. Future Outlook - The company is expected to maintain strong growth in 2025, with anticipated sales and gross margins surpassing Q4 2024 levels [3]. - The international expansion is projected to contribute significantly to profitability starting in 2026, with the domestic market already positioned for breakeven [3]. - The company is advancing its autonomous driving capabilities, with plans to launch a city NOA solution by the end of 2025, positioning it competitively against major players [3].