CLSA has released a research report assigning LEAPMOTOR (09863) a target price of HK$80 and an "Outperform" rating. The company's net profit for the fourth quarter of 2025 increased by 137% quarter-on-quarter to RMB 355 million, driving the full-year net profit to a positive RMB 538 million for the first time, which aligns with market expectations. The strong quarterly performance was supported by a record gross margin of 15.1%, up from 14.5% in the third quarter, primarily driven by an increase in non-automotive revenue. It is estimated that overseas sales of carbon credits and high-margin technology licensing contributed approximately 3 percentage points to the gross margin. Looking ahead to the first quarter of this year, the firm anticipates that rising raw material costs and sales volume pressures will impact profitability. However, non-automotive revenue is expected to help cushion the effects. Furthermore, the launch of two new models, the A10 and D19, in March and April will reposition the company for growth.