CMB International Securities analyst Ji Shi maintained a Buy rating on Zhejiang Leapmotor Technology Co., Ltd. Class H (9863 – Research Report) yesterday and set a price target of HK$72.00.
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Ji Shi’s rating is based on several positive developments for Zhejiang Leapmotor Technology Co., Ltd. The company’s first-quarter results for 2025 exceeded expectations, primarily due to a higher average selling price and gross profit margin, as well as unexpected contributions from strategic partnerships. These factors reflect the company’s effective cost reduction efforts, which are anticipated to become more pronounced with the transition to the Leap 3.5 architecture in mid-2025.
Furthermore, Ji Shi has raised the sales volume forecast for FY25E by 15% to 0.55 million units, driven by stronger-than-expected sales and order intake. The gross profit margin forecast has also been increased, considering the benefits from strategic collaborations and cost efficiencies associated with the new architecture. Additionally, the company’s international operations are expected to contribute significantly to profits. These factors, along with improved market sentiment and higher earnings visibility, have led Ji Shi to maintain a Buy rating and increase the target price.
According to TipRanks, Shi is a 4-star analyst with an average return of 12.1% and a 53.85% success rate. Shi covers the Consumer Cyclical sector, focusing on stocks such as Geely Automobile Holdings, Nio, and China Yongda Automobiles Services.
In another report released yesterday, CLSA also maintained a Buy rating on the stock with a HK$72.00 price target.