Jingu Financial News | Changjiang Securities issued a research report stating that leapmotor (09863) saw a continuous increase in deliveries in November, reaching a new high of over 0.04 million vehicles, surpassing the annual delivery target ahead of schedule. Looking ahead, the current orders of the company continue to grow rapidly, with a rich plan for new vehicles in the future. With the strong new car cycle, coupled with the subsequent start of overseas sales, and the growth in sales of the domestically high-priced C16 model, the company's sales volume and revenue are expected to continue to grow rapidly. At the same time, in 2025, leapmotor set a sales target of 0.5 million vehicles, aiming for continuous year-on-year high-speed growth.
The bank stated that the continuous strong new car cycle and the extreme price-to-value ratio in the domestic market are driving continuous sales growth, while overseas joint ventures with Stellantis are initiating a global journey. 1) Domestic market: The company excels in creating an extreme price-to-value ratio through technological expertise, with strong competitive advantages. Sales have grown rapidly in recent years, with an increasing proportion of high-priced models, driving solid improvement in financial indicators. The strong new car cycle in the future is expected to continue pushing up sales, and the company is optimistic about turning losses into profits domestically as soon as possible. 2) Overseas market: The company cooperates with Stellantis, the world's fourth-largest automotive group, using its strong global resources such as distribution and after-sales networks, factory capacity, to achieve light asset internationalization. This approach offers advantages of low initial investment, faster deployment, and more flexible adjustments. In the future, through exports, semi-knockdown kits (SKD), and local production, the company will tap into the substantial profit contribution brought by profitable overseas sales. Sales are forecasted to be 0.29, 0.5, and 0.75 million vehicles for the years 2024-2026. The "buy" rating is maintained.
