LEAPMOTOR(HK:09863) Changjiang Securities·2025-03-14 11:54Investment Rating - The investment rating for the company is "Buy" and it is maintained [6]. Core Insights - Leap Motor focuses on self-research to create cost advantages, resulting in an excellent price-performance ratio, with products covering price ranges from 50,000 to 200,000 CNY. The company expects revenue of 13.5 billion CNY in Q4 2024, with a gross margin of 13.3% [2][4]. - The B10 model received over 15,000 orders within one hour of its release, indicating strong market demand. The model is set to officially launch in April [6]. - The company achieved a net profit of 80 million CNY in Q4 2024, marking a significant improvement in profitability, with a year-on-year increase in sales volume of 103.8% and revenue growth of 92.1% for the year [6]. Summary by Sections Financial Performance - In 2024, Leap Motor's total sales reached 294,000 units, with revenue of 32.16 billion CNY, and a gross margin of 8.4%, which is an increase of 7.9 percentage points year-on-year. In Q4 alone, sales were 121,000 units, with revenue of 13.46 billion CNY, reflecting a year-on-year increase of 155% [6]. - The company reported a gross profit of 1.78 billion CNY in Q4, with a gross margin of 13.3%, up 6.5 percentage points year-on-year [6]. Product Development - The B10 model features the LEAP 3.5 technology architecture and includes advanced driving assistance capabilities. It offers two battery options with ranges of 510 km and 600 km, priced between 109,800 and 139,800 CNY [6]. - The company plans to launch 2-3 new products globally each year over the next three years, with the B10 already released and two additional models from the B series planned for 2025 [6]. Market Strategy - Leap Motor is leveraging its technological strengths to maintain a competitive edge in the domestic market, while also expanding internationally through a partnership with Stellantis, which allows for a low-investment, flexible market entry strategy [6]. - The company has established a robust domestic distribution network with 860 stores and aims to expand its global presence, targeting over 500 stores by 2025 [6].