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<Research>CMBI Raises LEAPMOTOR (09863.HK) TP to HKD72, Maintains Buy Rating
CMBI, in its report, maintained a Buy rating on LEAPMOTOR (09863.HK). LEAPMOTOR's net loss for 1Q25 was RMB130 million, better than the broker's expectations, on the ride o...
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<Research>CMBI Raises LEAPMOTOR (09863.HK) TP to HKD72, Maintains Buy Rating
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CMBI, in its report, maintained a Buy rating on LEAPMOTOR (09863.HK)  +1.150 (+1.852%)    Short selling $23.42M; Ratio 3.027%   . LEAPMOTOR's net loss for 1Q25 was RMB130 million, better than the broker's expectations, on the ride of an escalation in ASP and GPM, compounded with unexpected contributions from strategic partnerships.

CMBI assumed that LEAPMOTOR's cost reduction benefits from its underestimated internal R&D capabilities, which have begun to reflect in the GPM for 1Q25. It was envisioned that the cost reduction effect will become more evident once all models switch to the Leap 3.5 architecture by mid-2025.

Related NewsCCBI: LEAPMOTOR (09863.HK) TP Elevated to $86.1 as 1Q Profit Improves
The broker raised its sales forecast on the company for FY2025 by 15% to 550,000 units. It estimated breakeven at a net level for the company in FY2025, followed by a tenfold increase to RMB1.2 billion for FY2026 net profit. The TP was hiked from HKD50 to HKD72.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-05-22 16:25.)

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