LEAPMOTOR(HK:09863) Guotou Securities·2025-08-26 03:04Investment Rating - The investment rating for the company is "Buy-A" with a target price of 84.5 HKD for the next 6 months [7]. Core Insights - The company reported excellent mid-year performance for 2025, achieving a revenue of 24.25 billion RMB, a year-on-year increase of 174.0%, and a net profit of 30 million RMB, with an adjusted net profit of 330 million RMB, marking a turnaround from losses [1]. - In Q2 2025, the company achieved a revenue of 14.23 billion RMB, reflecting a year-on-year growth of 165.5% and a quarter-on-quarter increase of 42.0%, driven by new vehicle launches and strategic partnerships [2]. - The company demonstrated further scale effects with a gross margin of 13.6% in Q2 2025, an increase of 10.8 percentage points year-on-year, while optimizing its expense ratios across sales, management, and R&D [3]. - The company is accelerating its global expansion, having exported 20,000 vehicles in H1 2025, leading the new energy vehicle sector, and localizing production in Malaysia [4]. Financial Projections - Revenue projections for the company from 2025 to 2027 are 64.67 billion RMB, 103.79 billion RMB, and 129.74 billion RMB, respectively, with corresponding price-to-sales ratios of 1.4, 0.9, and 0.7 [4]. - The company is expected to achieve a net profit of 886 million RMB in 2025, with a projected net profit margin of 1.4% [10]. - The earnings per share (EPS) is forecasted to be 0.66 RMB in 2025, increasing to 4.89 RMB by 2027 [10].