LEAPMOTOR(09863) 东吴证券·2024-05-20 09:02Investment Rating - Buy (Maintained) [1] Core Views - The company's Q1 2024 performance was in line with expectations, with a clear strategy for overseas expansion [1][3] - Revenue for Q1 2024 was RMB 3.486 billion, a year-on-year increase of 141.7%, but a quarter-on-quarter decrease of 33.9% [3] - The company reported a net loss of RMB 1.013 billion in Q1 2024, with a per-vehicle loss of RMB 30,000, showing a reduction in losses compared to the previous year [3] - The company's gross margin for Q1 2024 was -1.4%, slightly below expectations due to the impact of the Spring Festival holiday and increased discounts on older models [3] - The company plans to expand its sales network to 200 outlets by the end of 2024, including Stellantis & You networks, and aims to reach 500 outlets by 2026 [3] - The company's long-term strategy includes deepening its presence in the mainstream market in China, accelerating overseas expansion through a light-asset model with Stellantis, and expanding into new business areas by supplying core components to other OEMs [4] Financial Forecasts and Valuation - Revenue for 2024E is projected to be RMB 33.024 billion, a year-on-year increase of 96.15% [2] - Net profit attributable to the parent company is expected to be RMB -3.298 billion in 2024E, improving to RMB 882.44 million in 2025E and RMB 2.955 billion in 2026E [2] - EPS for 2024E is forecasted to be RMB -2.47, improving to RMB 0.66 in 2025E and RMB 2.21 in 2026E [2] - The company's P/E ratio for 2024E is -9.37, improving to 35.01 in 2025E and 10.45 in 2026E [2] Market and Operational Data - The company's closing price on the Hong Kong stock exchange was HKD 31.30, with a market capitalization of HKD 34.94376 billion [5] - The company's net asset per share is RMB 9.35, with a total share capital of 1.33697 billion shares [6] - The company's asset-liability ratio is 56.07%, with total assets of RMB 28.45342 billion and total liabilities of RMB 15.95522 billion [6][8] Overseas Expansion - The company plans to start sales in 9 European countries from September 2024, with further expansion into South America, Asia-Pacific, the Middle East, and Africa in Q4 2024 [3] - The company aims to launch 6 new models globally by 2027, with the C10 and T03 being the first models to go global [3] Long-term Strategy - The company will focus on the mainstream market in China, leveraging its self-developed cost advantages and pursuing a strategy of high product value for price [4] - The company will adopt a light-asset model for overseas expansion, utilizing Stellantis' global network and after-sales service system [4] - The company plans to supply core components to other OEMs, creating new business growth opportunities [4]