Lyon Maintains Li Auto at "Outperform" with HK$80 Target Price

CLSA maintained its "Outperform" rating on Leapmotor (09863.HK) with a target price of HK$80. The report noted that the company’s net profit for Q4 2024 surged 137% quarter-over-quarter to RMB 355 million, driving full-year net profit to a record positive RMB 538 million—meeting market expectations. This strong performance was supported by a record-high gross margin of 15.1%, up from 14.5% in Q3, primarily driven by growth in non-vehicle-related revenue. CLSA estimates that overseas carbon credit sales and high-margin technology licensing contributed approximately 3 percentage points to the gross margin. The firm believes Leapmotor’s diverse product portfolio and multiple revenue streams have effectively offset competitive pressures in the industry.