17 Mar 2026 CMB International Global Markets | Equity Research | Company Update Leapmotor (9863 HK) Eyes on new models, especially D19 Maintain BUY. We view Leapmotor's 4Q25 earnings as largely in line and management guidance upbeat. We believe the upcoming two D-series models could be key to its margins and valuation, although A-series may contribute more sales volume. We maintain our FY26E sales volume forecast of 0.9mn units. We also expect revenue and profit from other automakers including R&D support, ...

Core Insights - After ten years of establishment, Leap Motor has become a leading player in the automotive industry, aiming to achieve annual sales of 4 million vehicles and become a respected global smart electric vehicle company [1] - Leap Motor has delivered over 1.2 million vehicles by December 2025, with an expected annual sales of nearly 600,000 units in 2025, maintaining its position as the top seller among new car manufacturers in China [1] - The company has achieved continuous quarterly profitability, indicating a sustainable development trajectory [1] Group 1 - Leap Motor's founder, Zhu Jiangming, has set 2026 as the "breakthrough year" for reaching annual sales of 1 million vehicles, leveraging core technologies and a competitive self-sourced parts system [3] - The company emphasizes "full-domain self-research" as a core driver, with self-developed components accounting for approximately 65% of the vehicle cost [3] - Leap Motor has launched China's first automotive-grade intelligent driving chip, Lingxin 01, and has developed integrated battery chassis technology and a central domain control architecture [3] Group 2 - The product lineup includes four series (A, B, C, D) and the Lafa5 model, covering vehicle types from A0 to D levels, with both pure electric and range-extended options [3] - The C series has been particularly successful, with C10 sales reaching 20,000 units in October, and the newly launched B series and Lafa5 also experiencing strong sales [3] - Leap Motor has established a unique overseas market entry strategy through a partnership with Stellantis, covering 35 countries and regions with over 1,800 global sales outlets, including more than 800 overseas [4] Group 3 - The company has officially launched the high-end D series, featuring the D19 SUV and D99 MPV, aimed at transitioning the market from price competition to value competition [5] - The D19 is positioned as a technology luxury flagship SUV, offering six or seven-seat configurations and high-end features [7] - The D99 MPV will be available in both range-extended and pure electric versions, with significant battery specifications [7] Group 4 - Leap Motor's future strategy focuses on five key areas: continuous technological innovation, expanding the ABCD product series, building an AI-driven ecosystem, creating localized super-integrated factories, and enhancing collaborative marketing services [7]