<div id="readability-page-1"><div><p>Citi said in a report that LEAPMOTOR (09863.HK)<span> </span><span> -4.880 (-10.792%)  </span> <span> Short selling $85.41M; Ratio 15.878%  </span> 's overall profitability in 1Q met expectations, but gross margin was below market forecasts. This was mainly due to a higher proportion of B-series models (with lower average selling prices) in total sales compared with the same period last year when the mix included more C-series models (with higher average selling prices); a higher volume of CBU exports in 1Q, which diluted gross margin; and seasonal factors that led to a QoQ decline in sales volume.</p><p>With a strong product cycle ahead, the broker expects overall gross margin to rebound to 12% to 13% in 2Q, supported by higher deliveries of 245,000 vehicles; inclusion of the D19 model (with gross margin above 20%), which will enhance blended average selling prices; and a reduced dilutive impact from CBU exports as their QoQ increase remains stable.</p><p>In addition, as planned by the company, the synergies from annual bill-of-material cost reductions will start to materialize from 2Q and begin to offset potential battery cost increases. After factoring in 2Q research and development expenses of RMB1.5 billion, selling expenses of RMB1.2 billion and administrative expenses of RMB0.5 billion, Citi expects LEAPMOTOR to achieve breakeven in 2Q. The TP was slightly lowered from HKD100 to HKD98, with a Buy rating. (ha/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-15 16:25.)</p></div></div>

09863

CARZ

159323

516110

562700

515030

516380

562260

159306

159565

<p>Citi has lowered LEAPMOTOR's target price from HKD100 to HKD98, maintaining a Buy rating. The company's profitability in Q1 met expectations, but gross margin fell short due to a higher sales proportion of lower-priced B-series models. Citi anticipates a rebound in gross margin to 12-13% in Q2, supported by increased vehicle deliveries and the introduction of the D19 model. LEAPMOTOR is expected to break even in Q2 after accounting for R&D and selling expenses.</p>

AASTOCKS News

LEAPMOTOR

First Trust S-Network Future Vehicles & Tech ETF

ChinaAMC CSI Hong Kong Connect Automobile Industry Thematic ETF

Guotai CSI 800 Automobile and Parts ETF

ChinaAMC CSI Auto Components Thematic ETF

Hua Xia CSI New Energy Vehicles ETF

Hwabao WP CSI Intelligent Electric Vehicle ETF

HFT CSI Auto Components Thematic ETF

Ping An CSI Auto Components Thematic ETF

E Fund CSI Auto Components Thematic ETF

Citigroup

CITIGROUP INC 6.250 NON CUM SER II PFD WI

Citi Cuts LEAPMOTOR  TP to HKD98, Expects Breakeven in 2Q