Goldman Sachs: Granting a "buy" rating to LEAPMOTOR (09863) with a target price of 50 Hong Kong dollars.

Goldman Sachs released a research report stating that as a leading pure new energy vehicle company, LEAPMOTOR (09863) is expected to launch a series of competitive new models and smoothly advance production, driving continuous acceleration of growth in the domestic market in the next three quarters. It has initiated coverage with a "buy" rating and a target price of 50 Hong Kong dollars. The bank believes that with strong support from a 554% year-on-year increase in overseas retail sales in the first quarter of this year, the company's target sales volume of 125,000 units overseas by 2026 is relatively high compared to Goldman Sachs' estimate of 200,000 units, representing a 60% upward potential. The overall revenue and profit compound annual growth rates for 2025-2027 are expected to reach 48% and 143% respectively, but the current price-to-earnings ratio and price-to-sales ratio of the stock are discounted by about 60% compared to competitors. The bank stated that catalysts for LEAPMOTOR include the launch of new models, climbing monthly delivery volumes, and accelerated exports to meet retail terminal demand. Goldman Sachs' profit forecast for the company is higher than market expectations, mainly driven by higher sales volume expectations. Based on higher sales volume assumptions from overseas markets, LEAPMOTOR is expected to rank among the top three in the overseas market, while strong retail terminal demand will further accelerate the company's monthly export growth.