HK Movers | Leapmotor Shares Surge Over 7% to a Record High After Earnings

Leapmotor shares in Hong Kong have surged over 7% to a record high, with the company achieving its first-ever positive semi-annual net profit. Citibank has raised its target price to HK$100.

In terms of news, Leapmotor announced its mid-2025 financial results, with revenue reaching RMB 24.25 billion, an increase of 174.0% year-on-year. The gross profit margin was 14.1%, up 13 percentage points compared to 1.1% in the same period of 2024. The net profit attributable to the company's equity holders was RMB 33.03 million, reversing a year-on-year loss. Additionally, in July 2025, the company’s deliveries hit a new high of 50,129 units, topping the sales chart of China’s new energy vehicle brands for five consecutive months and becoming the only Chinese new energy vehicle brand to surpass 50,000 units in monthly deliveries in 2025.

JP Morgan noted that although Leapmotor's strong Q2 2025 performance was anticipated, the actual profit exceeded expectations by twofold. Year-to-date, Leapmotor shares have risen by 109% (MSCI China Auto Index: 20%). JP Morgan projects an 85% year-on-year increase in sales for 2026 and expects Leapmotor's stock price to rise further. The target price for June 2026 has been raised to HK$95, maintaining an "overweight" rating. Citibank has initiated a 90-day upside catalyst watch for Leapmotor, based on higher sales, gross profit margins, and net profit projections, increasing the target price from HK$86.4 to HK$100 (equivalent to a 29.5x forecasted 2026 P/E ratio), and maintaining a "buy" rating.