The analyst rating for LEAPMOTOR (09863.HK) is maintained at "Buy" by Huatai Securities due to several key factors:
1. Strategic Acquisition: The announcement of FAW's premium stake acquisition of approximately RMB3.74 billion indicates strong backing and a long-term strategic aim to become a world-class car company.
2. Sales Growth: The company is projected to achieve sales of nearly 600,000 units in 2025, marking a significant milestone towards annual profitability.
3. Future Sales Targets: LEAPMOTOR aims for sales of 1 million units in the current year and has a long-term target of 4 million units, indicating ambitious growth plans.
4. New Global Car Cycle: The company is entering a new global car cycle from 2025 to 2027, which is expected to drive rapid revenue growth and contribute to reaching a profit turning point.
5. Valuation Premium: Huatai Securities has granted a 30% valuation premium based on the company's strong new car cycle, accelerated overseas production, and expansion of strategic partnerships.
6. Target Price and PE Ratio: The target price is set at $83.69 with a target PE ratio of 21x for the year, reflecting confidence in the company's growth potential.
These factors collectively support the positive outlook and the "Buy" rating for LEAPMOTOR.
