LEAPMOTOR(HK:09863) GUOTAI HAITONG SECURITIES·2025-08-20 03:12Investment Rating - The report maintains a "Buy" rating for Leap Motor [2][6][10] Core Views - Leap Motor's mid-2025 performance is impressive, with significant revenue growth and a return to profitability for the first half of the year. The company is expected to benefit from new vehicle launches and accelerated overseas market expansion [2][10]. Financial Summary - Total revenue for 2023 is projected at 16,747 million RMB, increasing to 32,164 million RMB in 2024, and reaching 65,268 million RMB by 2025, reflecting a growth rate of 35%, 92%, and 103% respectively [4][13]. - Gross profit is expected to rise from 80 million RMB in 2023 to 2,694 million RMB in 2024, and further to 9,333 million RMB in 2025 [4][13]. - Net profit is forecasted to turn positive in 2025, with estimates of 1,267 million RMB, following losses of 4,216 million RMB in 2023 and 2,821 million RMB in 2024 [4][13]. Performance Highlights - In the first half of 2025, Leap Motor achieved a revenue of 24.25 billion RMB, a year-on-year increase of 174%, and a net profit of 30 million RMB, marking the first half-year profit for the company [10]. - The company delivered 222,000 vehicles in the first half of 2025, a 155.7% increase year-on-year, leading the sales among new energy vehicle brands in China [10]. - The gross margin for the first half of 2025 was 14.1%, up 13.0 percentage points year-on-year, indicating significant improvement in profitability [10]. Market Position and Strategy - Leap Motor ranked first among new energy vehicle brands in terms of export volume, with 20,375 units exported in the first half of 2025 [10]. - The company is accelerating its global product rollout, with the first batch of B10 models set to launch in Europe in September 2025 [10]. - Leap Motor plans to establish a localized manufacturing base in Europe by the end of 2026, enhancing its global supply chain [10].