LEAPMOTOR

Leapmotor advanced 5% to HKD 36.34, building on recent momentum in the wake of this week's strong quarterly results. Q4 revenue reached HKD 22.5 billion, expanding 81% year-over-year, while net profit jumped to HKD 2.81 billion, surging 187% year-over-year; earnings per share came in at HKD 0.1964, up 180% annually, underscoring markedly improved profitability and operational leverage. The company unveiled the LiDAR-equipped A05s compact EV and refreshed B01 and B10 models, supplementing geographic expansion into North America via its Stellantis partnership. Though first-half sales completion came in at only 35.6%, management maintained its 1-million-unit annual delivery target. The broader context: the stock has surrendered more than half its value from August's peak of HKD 76.3, sitting down roughly 27% year-to-date, as investors weigh intensifying competition in China's EV market against potential for sustained growth. Trading at a 164x trailing PE ratio underscores elevated valuation expectations.

Leapmotor rebounded modestly to HKD 34.64 today, up 0.35%, largely supported by yesterday's 52-week low of HKD 32.92, though momentum remained weak with lingering morning weakness reflecting residual profit-taking pressure. Earnings-wise, Q4 and Q3 EPS each hit HKD 0.1964 and HKD 0.1931 respectively, up over 175% year-over-year, while revenue sustained 80%+ growth, showing robust profit expansion; however PE of 156.2 keeps valuation stretched. H1 deliveries reached 81K units against the 100 million annual target (35.6% progress rate), falling short of expectations, and while recent launches of the LiDAR-equipped A05s and refreshed B01/B10 models plus Stellantis partnership expansion broaden product reach and export channels, industry data reveals Chinese EV startups broadly struggle to meet mid-year targets amid intensifying competition. Trading 30.1% below YTD start and 54.6% off the 52-week high of HKD 76.3, the lofty valuation faces mounting headwinds as sales shortfalls widen and competitive pressures intensify.

HK9863 fell 5.3% to HK$33.46, touching a new 52-week low of HK$32.84 intraday, extending its year-to-date decline of 32.5% and pulling back 56% from its August 2025 peak of HK$76.30. Despite headline earnings growth—Q4 2025 revenue of HK$22.51B rose 81.47% year-over-year and net profit of HK$281M jumped 186.73%, with EPS up 180.27%—the profitability base remains razor-thin at 1.25% net margin. Product initiatives continue with refreshed B01 and B10 models, alongside the A05s featuring LiDAR, while the company maintains its 1-million-unit annual sales target at 35.6% completion rate through mid-year. However, at 150.89x PE, the valuation appears stretched; the pullback likely reflects ongoing market repricing of previously-elevated expectations.

Leapmotor's HK-listed shares rose to HKD 35.32 today, peaking intraday at HKD 35.72, driven by strong Q4 earnings and robust product momentum. On the product side, the LiDAR-equipped A05s compact EV continues development, while refreshed B01 and B10 models entered the market to bolster the company's 1-million annual delivery target; Q4 earnings revealed surging profits, with EPS jumping to HKD 0.1964 (up 180% YoY), revenues reaching HKD 22.51 billion (up 82% YoY), and net profit climbing 187% year-over-year, signaling marked improvement in profitability. Supply-chain momentum also accelerated as Mersen secured approximately EUR 10 million in orders for Ford and Leapmotor's EV power components, advancing international expansion. Nevertheless, the stock remains well below prior peaks, trading 54% below its 52-week high of HKD 76.3 and down 29% year-to-date, while the elevated P/E multiple of 159x and thin net margin of 1.25% warrant caution on valuation and earnings sustainability.

Leapmotor closed down 0.6% today after a dramatic intraday reversal, starting strong at 36.0 HKD in morning trading but collapsing to a 34.5 HKD intraday low in afternoon session. The selloff was primarily driven by H1 delivery shortfall: the company has delivered only 356k units, representing just 35.6% of its full-year 1 million unit target, implying the need for near-doubling growth in H2 — a prospect the market views with significant skepticism. Despite impressive Q4/Q3 earnings with revenues up 71-81% YoY and net profit surging 180%+, the glaring disconnect between profitability growth and sales progress weighed heavily. Chinese EV startups broadly struggle with mid-year target achievement, while Leapmotor's 157x PE valuation leaves little room for disappointment. Down 29.5% year-to-date and 54%+ from 52-week highs, the stock now trades near recent lows, fully reflecting investor doubts on near-term growth momentum.