LEAPMOTOR (09863) saw its shares rise more than 4% during morning trading. At the time of writing, the stock was up 4.04%, trading at HK$56.60 with a turnover of HK$242 million.
In March, LEAPMOTOR delivered 50,029 vehicles, representing a year-on-year increase of 34.9% and a month-on-month surge of 78.2%. The company's founder, Chairman, and CEO Zhu Jiangming, along with shareholder Fu Liquan, recently increased their stakes in the company at an average price of approximately HK$45.1, with a total investment of around HK$230 million, demonstrating confidence in the company's development prospects.
JPMorgan has raised its profit forecasts for LEAPMOTOR for the 2026/27 fiscal years by 10% to 17% and increased its target price for the stock to HK$90. The firm believes the shares still have about 65% upside potential even after rallying roughly 27% over the past month. The previous target price, set late last year, was HK$56. The stock closed at HK$54.40 in Hong Kong on Wednesday.
Driven by the ramp-up of new models and strong export growth, particularly in the European market amid rising oil prices, LEAPMOTOR is expected to achieve quarter-on-quarter delivery growth of approximately 90% in the second quarter and about 100% in the second half of the year. This momentum is projected to be the strongest among Chinese new energy vehicle manufacturers. The full-year sales forecast is around 960,000 units, a year-on-year increase of about 60%.
LEAPMOTOR is set to launch a six-seater SUV, the D19, which is expected to be priced above RMB 200,000, marking the company's first high-end product in this price segment. Two additional new models are anticipated to be released around June. JPMorgan maintains its Overweight rating on the stock.
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