In "The Big Banks," China International Capital Corporation (CICC) lowered the target price for Leapmotor to 78 yuan, with quarterly results meeting expectations

CICC published a research report stating that Leapmotor (09863.HK) achieved results in the third quarter of this year that met the firm's expectations, with revenue of RMB 19.45 billion, a year-on-year increase of 97.3%, and a net profit attributable to the parent company of RMB 150 million, turning a profit year-on-year; the net profit for the first three quarters reached RMB 180 million.

CICC indicated that multiple models of Leapmotor have driven continuous high growth in sales, with the D platform achieving an upward breakthrough in its product matrix. Gross margin continues to improve, and cash flow performance is optimized. The globalization strategy is being advanced in coordination, with capacity and channel layout deepening continuously.

CICC maintains the company's profit forecasts for 2025 and 2026 at RMB 860 million and RMB 4.89 billion, respectively. The current stock price corresponds to a price-to-earnings ratio of 14.4 times for 2026; it maintains an "outperform the industry" rating, and due to the downward shift in the sector's valuation center, it has lowered the target price by 12.6% to HKD 78, corresponding to a forecasted price-to-earnings ratio of 20.5 times for 2026