【招银国际】More positive on FY25E after 1Q25 beat-250520（5页）.pdf

1、 PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE MORE REPORTS FROM BLOOMBERG:RESP CMBR OR http:/.hk 1 MN 20 May 2025 CMB International Global Markets|Equity Research|Company Update Leapmotor(9863 HK)More positive on FY25E after 1Q25 beat Maintain BUY.Leapmotors 1Q25 net

2、loss of RMB130mn beat our prior forecasts on higher average selling price(ASP)and GPM,as well as unexpected contribution from the strategic cooperation.We believe its cost reduction efforts,driven by its undervalued in-house R&D capabilities,have started to be reflected by its 1Q25 GPM and could be

3、even more apparent after all the models are shifted to the Leap 3.5 architecture in mid-2025.We raise our FY25E sales volume forecast by 15%to 0.55mn units.We project breakeven at a net level in FY25E,followed by a tenfold increase to RMB1.2bn for FY26E net profit.1Q25 results beat on higher GPM.Lea

4、pmotors 1Q25 revenue was higher than our expectation by 8%,partly due to its better-than-expected ASP despite higher discounts.Its 1Q25 GPM rose 1.6ppts QoQ to 14.9%,a record high,due in part to an unexpected service income from the strategic cooperation with FAW.We estimate that its vehicle 1Q25 GP

5、M widened by more than 4ppts from 3Q24 with similar sales volume levels,which reflects Leapmotors superb cost reduction capabilities.SG&A and R&D expenses combined were also higher than our forecast by RMB350mn.Accordingly,its 1Q25 net loss of RMB130mn beat our forecast by about RMB350mn.We have tur

6、ned more optimistic about its FY25E sales volume and earnings.We raise our FY25E sales volume forecast from 0.48mn units to 0.55mn units,given stronger-than-expected sales performance and order intake during Apr to May.We lift our FY25E GPM forecast from 11.2%to 12.1%,taking into account the contrib