Core Viewpoint - The report from Huaxing Securities is optimistic about Leap Motor (09863), predicting a significant increase in sales due to high cost-performance models and expecting the company to reach a profitability inflection point by 2025. The company effectively controls costs through a fully self-developed technology platform and is rapidly expanding into overseas markets in collaboration with Stellantis, showcasing significant advantages in international expansion. A "Buy" rating is given with a target price of HKD 71.80 [1] Sales Growth and Profitability Inflection Point - Leap Motor has experienced rapid sales growth, with October sales reaching a historical high of 70,289 units (up 84% year-on-year) and cumulative sales for the first ten months at 465,805 units (up 125% year-on-year). The company is positioned as a mass-market brand in the 100,000-200,000 RMB price range, and the launch of models C10 and C16 in 2024 is expected to further boost sales. The introduction of models D19 and Lafa will enrich the product matrix and support continued sales growth. The company is anticipated to achieve profitability by 2025, becoming the second new force car manufacturer to do so [1][2] Overseas Market Development Advantages - Leap Motor is expanding its overseas market presence through a deep partnership with Stellantis, with plans to launch a new model annually from 2025 to 2027. Since entering the European market in September 2024, the company has seen rapid growth, with Q2 2025 sales in Europe increasing by 65.8% to 3,196 units, totaling 5,124 units in the first half of the year, ranking fifth among all domestic brands. The company is expected to surpass XPeng in total European sales this year. Leveraging Stellantis's global distribution network and brand strength, Leap Motor has a competitive edge in overseas distribution and manufacturing [2] Full-stack Self-research Technology Capability - Leap Motor possesses self-research and manufacturing capabilities across six core areas: vehicle architecture, electronic and electrical architecture, batteries, electric drives, intelligent cabins, and intelligent driving, which account for 65% of the vehicle manufacturing cost. The core technology architecture, LEAP series, has undergone multiple upgrades since its introduction in 2019. The company can maximize fixed asset cost allocation and enhance manufacturing scale efficiency through its fully self-research model, thereby reducing manufacturing costs and strengthening its core technological competitiveness [3] Investment Recommendations - The report initiates coverage with a "Buy" rating and a target price of HKD 71.80. Sales projections for Leap Motor from 2025 to 2027 are 578,528, 750,215, and 837,500 units, corresponding to revenues of CNY 62.9 billion, 78.02 billion, and 103.73 billion, respectively. The forecasted gross margins for the same period are 14.5%, 15.7%, and 16.8%. The company is expected to maintain an operating efficiency with a three-expense ratio of approximately 15%, with adjusted net profits projected at CNY 1.61 billion, 3.24 billion, and 6.58 billion. The valuation is based on a 1.2 times P/S ratio for 2026, higher than the average of comparable companies at 1.1 times [4]

Core Insights - Leapmotor has achieved significant milestones with the delivery of its 10,000th B01 vehicle and the unveiling of the new B10 model in a unique color, marking a new phase in its global expansion [1][2] - The company has maintained its position as the top-selling new force brand in China for five consecutive months and has become the leading exporter among new force brands, with a total export volume of 24,980 units from January to July 2025 [2] - Leapmotor's B10 model has rapidly gained market traction, surpassing 50,000 deliveries within four months of its launch, and is set to debut at the Munich Auto Show in September [1][2][3] Sales Performance - Leapmotor has achieved a cumulative delivery of over 900,000 vehicles as of August 21, 2025, with a net profit turnaround and record revenue in the first half of the year [2] - The B01 model has seen over 20,000 pre-orders within a month of its launch, with 10,000 units delivered in just 37 days, indicating strong consumer demand [3] Technological Advancements - The B series vehicles are equipped with advanced technology, including Qualcomm 8650 chips and laser radar for enhanced driving assistance, showcasing Leapmotor's commitment to smart and high-quality vehicles [4] - The B10 model has demonstrated impressive performance in long-distance tests, achieving an 84.68% success rate in a 5,000 km journey, further validating its reliability and efficiency [5] Global Expansion Strategy - Leapmotor plans to showcase the B10 at the Paris Auto Show in October 2024 and aims to conduct extensive road tests across 18 countries and 200 cities by June 2025 [2] - The company is focused on making intelligent electric vehicles accessible to more families globally, promoting a high-quality travel experience through technological advancements [6][7]

Core Viewpoint - Leap Motor reported strong financial results for the first half of 2025, achieving revenue of 24.25 billion yuan, a year-on-year increase of 174%, and becoming the second Chinese new energy vehicle manufacturer to achieve half-year profitability [1] Financial Performance - The company's gross margin reached a historical high of 14.1%, with net profit attributable to shareholders at 30 million yuan, and adjusted net profit at 330 million yuan [1] - The actual net profit for Q2 2025 exceeded market expectations by 115 million yuan, with a reported net profit of 163 million yuan [1] - Operating cash flow generated during the period was 2.86 billion yuan, with cash reserves amounting to 29.58 billion yuan [6] Sales and Market Position - Leap Motor delivered approximately 222,000 vehicles in the first half of 2025, marking a year-on-year growth of 155.7%, leading the new energy vehicle sector in terms of delivery volume [1] - The company achieved a record monthly delivery of 50,129 vehicles in July 2025, maintaining its position as the top-selling new energy vehicle brand in China [4] - The B series and C series models have been well-received, with the C10 and C16 models leading sales in their respective categories [4] Product Strategy and Innovation - Leap Motor has adopted a high-end strategy, increasing the average selling price of its vehicles by 76% year-on-year, contrasting with the overall market trend of declining prices [5] - The company has invested heavily in R&D, with a nearly 100% increase in its autonomous driving team and computing resources [7] - The B10 model, launched in April 2025, features advanced technology and has quickly become a best-seller, achieving over 10,000 deliveries in its first month [8] International Expansion - Leap Motor exported 24,980 vehicles from January to July 2025, leading among new energy vehicle brands in China [9][12] - The company has established over 600 sales and service outlets across approximately 30 international markets, with plans to set up a local production base in Europe by the end of 2026 [12] - The stock performance has been strong, with a 125% increase in market value this year, and several investment banks have raised their target prices for the company [12]

Core Viewpoint - Leap Motor reported strong financial results for the first half of 2025, achieving revenue of 24.25 billion yuan, a year-on-year increase of 174%, and a gross margin of 14.1%, marking a historical high for the company [1] Financial Performance - The company achieved a net profit of 30 million yuan, and an adjusted net profit of 330 million yuan, becoming the second Chinese new energy vehicle manufacturer to report a half-year profit [1] - The actual net profit for Q2 2025 exceeded market expectations by 115 million yuan, with a gross margin of 13.6%, surpassing predictions by 0.3 percentage points [1][6] - Operating cash flow generated 2.86 billion yuan, with cash reserves reaching 29.58 billion yuan, indicating a healthy financial position [6] Sales and Market Position - Leap Motor delivered approximately 222,000 vehicles in the first half of 2025, a year-on-year increase of 155.7%, leading the new energy vehicle sector in delivery volume [1][5] - The company’s B and C series models have been well-received, with the C10 model topping the sales chart for medium-sized SUVs among new energy brands for three consecutive months [4] - In July 2025, the company achieved a record delivery of 50,129 vehicles, maintaining its position as the top-selling new energy brand in China [4] Product Strategy and Innovation - Leap Motor has adopted a high-end strategy, increasing the average selling price by 76% year-on-year, contrasting with the overall market trend of declining vehicle prices [5][6] - The company has invested heavily in R&D, with a nearly 100% increase in its autonomous driving team and computing resources, leading to the successful launch of advanced driving assistance features [7][8] - The B10 model, launched in April 2025, features the LEAP 3.5 technology architecture, achieving significant sales milestones shortly after its release [8] International Expansion - Leap Motor has exported 24,980 vehicles from January to July 2025, leading among new energy brands in China [10][15] - The company plans to establish a localized production base in Europe by the end of 2026, enhancing its global market presence [15] - The stock performance has been strong, with a 125% increase in market value this year, and several investment banks have raised their target prices for the company [15]

Core Insights - Zhejiang Leapmotor Technology Co., Ltd. officially launched the 2026 Leapmotor C16, positioning it as a "super comfortable intelligent long-range SUV" with over 70 upgrades and a value increase of more than 25,000 yuan, enhancing the travel experience for family users [1][3] Group 1: Product Launch and Features - The 2026 Leapmotor C16 is available in two versions: "Champion 6-seater" and "New 5-seater," catering to diverse family needs [1][3] - The new 5-seater version features "full configuration luxury, versatile space," including unique configurations such as an electric one-button bed mode and a 1,663L adaptable trunk [3][4] - The 6-seater version has undergone comprehensive upgrades in comfort, range, and intelligent experience, with a global first MPSUV design concept that combines MPV space advantages with SUV aesthetics [4][6] Group 2: Performance and Technology - The 2026 Leapmotor C16's pure electric version is equipped with an 81.9 kWh battery, achieving a CLTC range of 630 km, with fast charging capabilities allowing 30% to 80% charge in just 18 minutes [4][5] - The intelligent experience is enhanced with the Qualcomm Snapdragon SA8295P smart cockpit chip and the upgraded Leapmotor OS 4.0 Plus, featuring advanced AI voice interaction capabilities [5][6] - Safety features include a "fortress-level" protective design with a high-strength safety structure and advanced battery integration technology, achieving top scores in safety tests [6]