Goldman Sachs has issued a research report initiating coverage on LEAPMOTOR (09863) with a 'Buy' rating, setting a price target of HK$50.

The bank views LEAPMOTOR as a leading pure-play new energy vehicle manufacturer, poised to launch a series of competitive new models and smoothly advance production. This is expected to drive a sustained acceleration in domestic market growth over the next three quarters.

Goldman Sachs notes that the company's overseas retail sales surged 554% year-on-year in the first quarter, providing strong support. Against the bank's own estimate of 200,000 units, the company's overseas sales target for 2026 of 125,000 vehicles implies a potential upside of approximately 60%. Overall, the bank projects a compound annual growth rate of 48% for revenue and 143% for profit from 2025 to 2027.

However, the report highlights that the stock currently trades at a discount of roughly 60% compared to its peers on both price-to-earnings and price-to-sales ratios.

Key catalysts for LEAPMOTOR are identified as the launch of new models, a ramp-up in monthly deliveries, and an acceleration in exports to meet robust retail demand. Goldman Sachs' profit forecasts for the company exceed market consensus, primarily driven by higher sales volume expectations. Based on more optimistic sales assumptions for overseas markets, the bank anticipates that LEAPMOTOR's models will rank among the top three in certain international markets, with strong retail demand expected to further accelerate the company's monthly export growth.