Event: On November 1, 2024, the company released sales data for October 2024 on its WeChat account. The number of LEAPMOTOR delivered in October reached 38,177, an increase of 109.7% over the previous year. In October, the number of orders for LEAPMOTOR also set a new record, with orders for more than 42,000 vehicles in a single month, and orders for the C10, C11, and C16 models all over 10,000.

The B10 debuted overseas, adhering to the global strategy: On October 14, 2024, during the Paris Auto Show, Zero Sports held a global strategy conference with the theme “A Leap Forward”. The B10, the first global model in the new Zero Sport B series, began its world debut. The new Zeros B-series is for young users around the world. It is built on the latest LEAP3.5 technology architecture. It has the four major characteristics of intelligence, style, fun, and quality, and is an important part of LEAPMOTOR's global strategy. Currently, Zero Run International has more than 200 dealers in 13 European countries, and plans to set up 500 dealers in Europe by the end of 2025. Additionally, Zero Run plans to expand its business to the Middle East and Africa, Asia Pacific, and South America starting in the fourth quarter of 2024.

Sales volume has remained in the top three, and user experience has been continuously optimized: In recent months, LEAPMOTOR has not only been among the top three new forces in sales, but due to Zero Run's continuous investment and accumulation in technology development and production processes, C16, C11, and C10 products have also continued to be well received by consumers and media, ranking in the top three in the 0.15-0.2 million yuan NEV reputation list. This month, the Zero Sport C16 won two awards in 2024: “China's Top Ten Chassis” and “China's Top Ten Car Bodies”. In terms of body structure and weight reduction, the Zero Run C16 has achieved an industry benchmark level; in terms of passenger cabin safety, new materials and technology are used to create a safe and secure passenger cabin for users. On October 24, Zero Run C10 launched the latest OTA launch, adding 15 new features, including the HPA parking memory function, and optimizing 16 experiences. On October 31, Zero Run C16 launched its first OTA launch, adding 22 features and optimizing 17 experiences.

Investment advice: We expect the company to achieve net profit to mother of -3.703/-1.08/0.854 billion yuan in 2024-2026, corresponding to a PE of 46.37 times in 2026, maintaining an “increase” rating.

Risk warning: Product sales fall short of expectations, risk of macroeconomic fluctuations, overseas progress falls short of expectations.