Core Viewpoint - Leap Motor (09863) has seen a significant stock increase of over 5%, currently trading at HKD 50.45, with a transaction volume of HKD 494 million [1] Group 1: Store Expansion - Leap Motor has opened 85 new stores recently, bringing the total number of stores to 1,068 as of January 4, 2026, establishing a broad and synergistic sales service network [1] Group 2: Strategic Partnerships - In December 2025, Leap Motor entered a strategic partnership with China FAW Group, with FAW investing HKD 3.744 billion at a premium [1] Group 3: Financial Performance - Huatai Securities reported that Leap Motor has completed a comprehensive self-research and platform construction over the past decade, achieving nearly 600,000 vehicle sales last year and is on track for its first annual profit [1] - The company aims for a sales target of 1 million vehicles this year and a long-term goal of 4 million vehicles [1] Group 4: Future Outlook - From 2025 to 2027, Leap Motor is expected to enter a new global vehicle cycle, with strategic partnerships contributing to incremental growth, leading to rapid revenue growth and a profitability turning point [1]

Core Viewpoint - Leap Motor (09863) has seen a significant stock increase of over 5%, reaching HKD 50.45, with a trading volume of HKD 494 million, following the announcement of new store openings and strategic partnerships [1] Group 1: Company Developments - Leap Motor has opened 85 new stores recently, bringing the total number of stores to 1,068 as of January 4, 2026, establishing a broad and synergistic sales service network [1] - In December 2025, Leap Motor entered a strategic partnership with China FAW Group, with FAW investing HKD 3.744 billion at a premium [1] Group 2: Financial Performance and Projections - According to Huatai Securities, Leap Motor has completed a comprehensive self-research and platform construction over the past decade, achieving nearly 600,000 vehicle sales last year and is on track for its first annual profit [1] - The company aims to sell 1 million vehicles this year and has a long-term target of 4 million vehicles, with expectations of rapid revenue growth and a profitability turning point from 2025 to 2027 due to a new global vehicle cycle and strategic partnerships contributing incremental growth [1]

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Insights - The company aims to become a world-class automotive enterprise, targeting sales of 1 million units in 2026 and 4 million units in the long term [4][5] - The company has established a comprehensive self-research and platform-based manufacturing system, achieving a sales volume of approximately 597,000 units in 2025, marking a significant improvement in its fundamentals [2][3] - The strategic investment from FAW Group, acquiring approximately 5% equity for about HKD 3.74 billion, highlights the recognition of the company's long-term strategy [3] Sales and Financial Projections - The company expects to achieve sales of 600,000, 1,040,000, and 1,420,000 units in 2025, 2026, and 2027 respectively, with corresponding revenues of RMB 68.3 billion, RMB 123.5 billion, and RMB 168.8 billion [5][11] - The net profit attributable to the parent company is projected to be RMB 6.6 million, RMB 51.1 million, and RMB 82.5 million for the years 2025, 2026, and 2027 respectively [5][11] Strategic Developments - The company has signed a powertrain cooperation agreement with FAW, focusing on the joint development of range-extended and plug-in hybrid vehicles, with the first model expected to be mass-produced in 2026 [3] - The D-series models, including D19 and D99, are set to launch in 2026, enhancing the company's high-end product lineup [3][4] Market Expansion - The company plans to leverage Stellantis' distribution channels to export over 60,000 vehicles in 2025, entering 35 countries with more than 800 overseas stores [2][4] - The strategic cooperation with FAW and Stellantis is expected to drive growth and profitability during the upcoming new vehicle cycle [4]