Event: In November 2023, the company sold 18,508 vehicles, up 130% year on year and 1.7% month on month.

From January to November 2023, the company sold 125,537 units, up 22.3% year on year.

The C10, the first global model under LEAP3.0 technology architecture, is expected to be launched in 24Q1: the company's first global model, the C10, was officially unveiled on November 17. The C10 is built on the LEAP3.0 technology architecture and uses the CTC2.0 integrated battery chassis design and four-leaf clover central integrated electronic and electrical architecture. C10 is expected to begin pre-sale in January 2024 and be officially delivered in March, which is expected to drive the company's sales volume to continue to increase.

Complete the equity transaction with Stellantis Group and accelerate global market development: On October 26, 2023, Stellantis Group and Zero Sports Car announced: 1) Stellantis Group plans to invest about 1.5 billion euros to obtain about 20% of the shares in zero sports cars, which will make the Stellantis Group an important shareholder in zero sports cars. 2) Stellantis Group and Zero Sports Auto will establish a joint venture called “Leapmotor International (Leapmotor International)” at a ratio of 51%: 49%. With the exception of Greater China, the joint venture has the exclusive right to export and sell to all other markets around the world, as well as the exclusive right to manufacture zero sports car products locally. 3) On November 20, Zero Sports Auto completed an equity transaction with Stellantis Group, and the cooperation was successfully implemented.

Investment advice: We expect the company to achieve net profit of 49.7/-24.2/24.01 billion yuan from 2023-2025.

The corresponding PE was -9.51/-19.54/19.58 times respectively, covering it for the first time and giving it an “increase in holdings” rating.

Risk warning: Product sales fell short of expectations, market competition intensified, and overseas travel progress fell short of expectations.