LEAPMOTOR(HK:09863) HTSC·2025-05-20 02:16Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company reported Q1 2025 revenue of 10.02 billion RMB, a year-over-year increase of 187.1%, and a gross margin of 14.9%, marking a new high [1][2] - The strong sales growth in Q1 is attributed to a significant increase in vehicle deliveries, with 87,552 units sold, up 162.1% year-over-year [2] - The company is expected to enter a new vehicle cycle in 2025, supported by strategic partnerships and cost management initiatives, leading to sustained revenue growth and profitability [1][3] Summary by Sections Revenue and Profitability - Q1 2025 revenue reached 10.02 billion RMB, with a gross margin of 14.9%, reflecting a 16.1 percentage point increase from the previous quarter [2] - The company aims for annual profitability in 2025, with projected revenues of 68.71 billion RMB, 91.41 billion RMB, and 116.66 billion RMB for 2025, 2026, and 2027 respectively [4] Vehicle Delivery and Market Expansion - The company delivered 87,552 vehicles in Q1 2025, significantly boosting revenue [2] - The company plans to launch three new models in 2025 and expand its distribution network, targeting an additional 80 cities by the end of the year [3] Strategic Initiatives - The company is enhancing its overseas market presence, with over 500 overseas outlets established and plans for local assembly in Malaysia by the end of 2025 [3] - Strategic collaborations with Stellantis and other partners are expected to contribute to revenue growth [3] Valuation and Price Target - The target price is set at 81.15 HKD, reflecting a 10% premium based on the anticipated strong vehicle cycle and strategic initiatives [4][8]