Movement Alert|Leap Motor Rises 4.14% in Regular Trading, FAW Plans to Acquire Approximately 10% Stake Combined with Goldman Sachs Buy Initiation

Market Focus06-25 15:02

On June 25, Leap Motor rose 4.14% in regular trading, trading at 35.14 HKD/share, with turnover of HKD 255 million, outperforming the broader auto sector which saw widespread declines.

On the news front, reports indicate that FAW Group plans to acquire approximately 10% of Leap Motor shares to deepen capital cooperation. The two parties have already commenced collaboration on NEV R&D and component development, with the first cooperative vehicle project having landed. They also plan to leverage FAW's overseas channels for sales distribution. Additionally, Goldman Sachs initiated coverage on Leap Motor with a Buy rating and a target price of 50 HKD, citing expectations for competitive new model launches and accelerating domestic market growth over the coming three quarters.

Fundamentally, Leap Motor reported H1 revenue of RMB 24.25 billion and achieved its first profit turnaround, subsequently raising its full-year profitability and delivery targets. Notably, the stock bucked the sector trend, as peers including BYD (-0.59%), Li Auto (-4.17%), XPeng (-3.05%), Geely (-2.45%), and Great Wall Motor (-3.23%) all declined during the session.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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