Citi: LEAPMOTOR (09863) SUV D19 priced competitively, maintaining "outperform" rating.

CICC Lion released a research report stating that LEAPMOTOR (09863) has launched its first flagship full-size hybrid SUV D19, priced competitively, targeting the high-end SUV market with prices ranging from 250,000 to 300,000 RMB, and is expected to be listed in the first half of 2026. The target price for LEAPMOTOR is maintained at HK$80 with an "outperform" investment rating. The bank believes that LEAPMOTOR continues its strategy of high cost performance on the D19, prioritizing battery capacity over fuel consumption. All models in the lineup use Contemporary Amperex Technology (03750) battery cells, dual highpass 8797 chips, and VLA intelligent driving models, which are in line with recent policy directions and consumer demands. In addition, the upcoming 2026 regulations require plug-in hybrid electric vehicles (PHEVs) to meet stricter engine standards, including the use of higher quality batteries. According to the bank's calculations, fuel consumption needs to be reduced by about 4.1%. The bank expects that the emphasis of regulatory agencies on improving engine quality will enhance the confidence of hesitant car buyers, and PHEVs with longer range are expected to perform better as they can both minimize fuel consumption and maintain sufficient electric range to alleviate range anxiety.