The analyst rating for LEAPMOTOR (09863.HK) is influenced by several factors outlined in the article. The company is projected to achieve significant revenue growth, with a forecast of RMB64.732 billion for 2025, representing a year-over-year increase of 101.3%. Additionally, LEAPMOTOR is expected to turn a profit of RMB538 million, indicating a positive turnaround from previous losses.
However, the rating was tempered by concerns over intensified competition in the passenger vehicle sector, leading the broker to reduce its 2026 net profit forecast by 19% to RMB3.94 billion and to introduce a new forecast for 2027 of RMB6.15 billion. Despite these adjustments, the broker maintained an "Outperform" rating, although the target price was lowered by 22.1% to HKD60.8. This suggests that while there are growth prospects, the competitive landscape is a significant concern impacting the overall outlook.
