LEAPMOTOR(HK:09863) Shenwan Hongyuan Securities·2025-08-29 07:07Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the near term [7]. Core Insights - The company reported a significant increase in revenue and sales volume in its 2025 half-year report, with revenue reaching 24.25 billion RMB, a year-on-year increase of 174%, and sales volume of 222,000 vehicles, up 156% year-on-year [4][5]. - The introduction of the B series models is expected to drive further sales growth, with the B10 model contributing significantly to sales since its launch [7]. - The company is projected to achieve substantial revenue and profit growth in the coming years, with revenue estimates for 2025, 2026, and 2027 revised upwards to 65.32 billion RMB, 133.26 billion RMB, and 178.08 billion RMB, respectively [5][7]. Financial Data and Profit Forecast - The company’s financial projections show a recovery in net profit, with estimates of 691 million RMB for 2025, 5.47 billion RMB for 2026, and 8.3 billion RMB for 2027, reflecting a strong growth trajectory [5][8]. - The earnings per share (EPS) is expected to turn positive in 2025, with an estimate of 0.52 RMB per share, increasing to 6.21 RMB per share by 2027 [5][8]. - The company’s gross margin is projected to improve, with a gross margin of 14.1% reported for the first half of 2025, up 13 percentage points year-on-year [4]. Sales and Market Expansion - The company plans to expand both domestically and internationally, with new models and strategic partnerships expected to enhance sales and profitability [7]. - The B series models are anticipated to match the sales performance of the C series, contributing to the overall sales target of over one million vehicles in the next year [7]. - The company is also focusing on enhancing its overseas market presence, with local production in Europe expected to begin next year, which will help mitigate tariffs and improve margins [7].