CMBI Slashes Leapmotor Price Target 18% to HKD60
CMB International (CMBI) has lowered its price target for Leapmotor (09863.HK) to HKD60, a significant reduction from its previous target of HKD73. Despite the cut, the investment bank maintained its 'Buy' rating on the electric vehicle manufacturer. The new target price is derived from a 21x price-to-earnings (P/E) ratio based on 2026 earnings estimates. This adjustment comes after Leapmotor reported its fourth-quarter 2025 financial results, which were largely in line with analyst expectations.
Profit Forecast for 2026 Lifted 20% to RMB3.6 Billion
Contradicting the cautious valuation, CMBI expressed optimism about Leapmotor's future earnings power. The bank increased its net profit forecast for 2026 by 20% to RMB3.6 billion and its 2027 forecast by 2% to RMB4.6 billion. The analysis suggests that while the company's lower-priced A-series vehicles may currently drive sales volume, they are not the primary drivers for future profitability. The conflicting signals suggest that while the bank sees stronger underlying operational performance, it is applying a more conservative valuation multiple to the stock.
Future Valuation Depends on New D-Series Models
The report places significant emphasis on Leapmotor's product pipeline, identifying the upcoming D19 SUV and D99 MPV as critical catalysts for the company's financial health. CMBI believes these new, presumably higher-margin models will be essential for improving the carmaker's overall profitability and justifying a higher valuation. For investors, this highlights a pivotal moment where the company must transition from volume-driven growth with its A-series to margin-focused expansion with its new D-series lineup.
Edgen Stock·Mar 18 2026, 03:56
