Goldman Sachs has published a research report initiating coverage on LEAPMOTOR (09863) with a Buy rating and a target price of HK$50.

The firm 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 its domestic market growth over the next three quarters.

The report highlights that the company's overseas retail sales surged 554% year-on-year in the first quarter, providing strong support. Against Goldman's estimate of 200,000 units, the company's 2026 overseas sales target of 125,000 vehicles presents a potential 60% upside. Overall, the bank forecasts revenue and profit compound annual growth rates of 48% and 143%, respectively, for 2025–2027. Despite this, the stock currently trades at a roughly 60% discount to peers on both price-to-earnings and price-to-sales ratios.

Key catalysts identified for LEAPMOTOR include 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 are above market consensus, primarily driven by higher volume expectations. This is based on the assumption of stronger sales from overseas markets, where LEAPMOTOR's models are expected to rank among the top three, with solid retail demand further accelerating monthly export growth.