LEAPMOTOR(HK:09863) Western Securities·2025-11-27 06:51Investment Rating - The report assigns a "Buy" rating for the company, upgraded from a previous "Hold" rating [6]. Core Insights - In Q3 2025, the company reported revenue of 19.45 billion yuan, a year-on-year increase of 97.3%, and a net profit of 150 million yuan. The gross margin improved to 14.5%, up 6.4 percentage points year-on-year and 0.9 percentage points quarter-on-quarter. The total vehicle deliveries reached 173,852 units, marking a year-on-year growth of 101.77% [1][6]. - The company has seen a significant increase in R&D investment, with Q3 R&D expenses rising to 1.21 billion yuan, a 55.4% year-on-year increase. In October, the company launched its new flagship D platform, which includes six key technologies [2]. - The company is expanding its global footprint, with a notable increase in overseas terminal orders in October, more than doubling compared to September. As of September 30, 2025, the company established over 700 overseas sales and service outlets across various international markets [2]. Financial Summary - The company forecasts revenues of 64 billion yuan, 102.4 billion yuan, and 131.1 billion yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 99%, 60%, and 28% [2][4]. - The projected net profit for 2025 is 936 million yuan, with a significant growth rate of 133.2% compared to the previous year. The earnings per share (EPS) is expected to be 0.66 yuan [4][6]. - The current price-to-sales (P/S) ratios for 2025, 2026, and 2027 are projected to be 1.02, 0.64, and 0.50, respectively, indicating a favorable valuation outlook [2].