LEAPMOTOR(HK:09863) HTSC·2025-05-20 02:45Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 81.15 [7][8] Core Insights - The company reported Q1 2025 revenue of RMB 10.02 billion, a year-on-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 the delivery of 87,552 vehicles, a 162.1% increase year-on-year, and an improved product mix with higher-priced models [2][3] - The company is expected to enter a strong new car cycle in 2025, with multiple new models launching and an accelerated overseas expansion [3][4] Revenue and Profit Forecast - Revenue projections for 2025-2027 are RMB 68.71 billion, RMB 91.41 billion, and RMB 116.66 billion, respectively, with net profits expected to be RMB 0.35 billion, RMB 2.04 billion, and RMB 4.31 billion [4][19] - The report anticipates that the company will achieve profitability in 2025, driven by high sales volume and improved gross margins [1][4] Market Expansion and Strategic Partnerships - The company has established 756 stores covering 279 cities as of Q1 2025, with plans to expand to 80 more cities by the end of the year [3] - The overseas market expansion is progressing, with over 500 outlets established and local assembly in Malaysia expected to start by the end of 2025 [3][4] - Strategic partnerships with Stellantis and China FAW are expected to contribute to revenue growth [3]