Zhejiang Leapmotor Technology Co., Ltd.

SEHK:9863 Stock Report

Market Cap: HK$37.2b

Zhejiang Leapmotor Technology Valuation

Is 9863 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 9863 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 9863 (HK$27.85) is trading below our estimate of fair value (HK$87.81)

Significantly Below Fair Value: 9863 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 9863?

Key metric: As 9863 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 9863. This is calculated by dividing 9863's market cap by their current revenue.
What is 9863's PS Ratio?
PS Ratio1.8x
SalesCN¥19.78b
Market CapCN¥34.79b

Price to Sales Ratio vs Peers

How does 9863's PS Ratio compare to its peers?

The above table shows the PS ratio for 9863 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.2x
489 Dongfeng Motor Group
0.3x4.3%HK$31.6b
1958 BAIC Motor
0.09x2.0%HK$18.8b
2238 Guangzhou Automobile Group
0.3x9.1%HK$86.5b
1114 Brilliance China Automotive Holdings
12.2x1.2%HK$14.8b
9863 Zhejiang Leapmotor Technology
1.8x35.6%HK$37.2b

Price-To-Sales vs Peers: 9863 is good value based on its Price-To-Sales Ratio (1.8x) compared to the peer average (3.2x).


Price to Sales Ratio vs Industry

How does 9863's PS Ratio compare vs other companies in the Asian Auto Industry?

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
9863 1.8xIndustry Avg. 1.1xNo. of Companies18PS01.22.43.64.86+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 9863 is expensive based on its Price-To-Sales Ratio (1.8x) compared to the Asian Auto industry average (1.1x).


Price to Sales Ratio vs Fair Ratio

What is 9863's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

9863 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.8x
Fair PS Ratio1.2x

Price-To-Sales vs Fair Ratio: 9863 is expensive based on its Price-To-Sales Ratio (1.8x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 9863 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$27.85
HK$40.44
+45.2%
17.9%HK$52.99HK$24.97n/a13
Dec ’25HK$28.30
HK$41.89
+48.0%
14.2%HK$53.20HK$28.15n/a12
Nov ’25HK$31.00
HK$34.70
+11.9%
14.4%HK$44.23HK$28.62n/a11
Oct ’25HK$33.50
HK$33.52
+0.06%
19.9%HK$50.98HK$24.27n/a11
Sep ’25HK$21.55
HK$33.31
+54.6%
20.8%HK$50.58HK$24.02n/a10
Aug ’25HK$24.55
HK$37.99
+54.8%
18.1%HK$50.09HK$24.57n/a10
Jul ’25HK$26.80
HK$39.00
+45.5%
19.1%HK$50.26HK$24.38n/a11
Jun ’25HK$28.50
HK$39.15
+37.4%
19.2%HK$50.49HK$24.49n/a11
May ’25HK$27.15
HK$38.43
+41.6%
21.0%HK$50.51HK$24.50n/a11
Apr ’25HK$26.25
HK$38.53
+46.8%
21.0%HK$50.67HK$24.48n/a11
Mar ’25HK$28.00
HK$45.19
+61.4%
12.4%HK$54.48HK$37.94n/a10
Feb ’25HK$21.55
HK$45.19
+109.7%
12.4%HK$54.48HK$37.94n/a10
Jan ’25HK$35.70
HK$48.93
+37.1%
14.8%HK$61.95HK$39.14n/a8
Dec ’24HK$40.20
HK$48.93
+21.7%
14.8%HK$61.95HK$39.14HK$28.308
Nov ’24HK$27.85
HK$47.16
+69.4%
17.1%HK$60.80HK$35.71HK$31.008
Oct ’24HK$34.80
HK$46.53
+33.7%
19.5%HK$60.61HK$33.50HK$33.507
Sep ’24HK$39.30
HK$46.83
+19.2%
19.5%HK$61.05HK$33.75HK$21.557
Aug ’24HK$46.00
HK$44.44
-3.4%
18.8%HK$54.87HK$34.05HK$24.556
Jul ’24HK$46.30
HK$39.44
-14.8%
23.9%HK$54.59HK$26.58HK$26.807
Jun ’24HK$34.10
HK$34.97
+2.6%
17.1%HK$46.20HK$27.01HK$28.506
May ’24HK$34.70
HK$35.81
+3.2%
17.2%HK$47.38HK$27.80HK$27.156
Apr ’24HK$38.90
HK$35.78
-8.0%
17.3%HK$47.40HK$27.81HK$26.256
Mar ’24HK$29.55
HK$37.78
+27.8%
25.5%HK$53.16HK$27.83HK$28.006
Feb ’24HK$29.15
HK$38.44
+31.9%
27.9%HK$53.68HK$28.10HK$21.555
Jan ’24HK$30.20
HK$37.93
+25.6%
26.6%HK$52.08HK$27.26HK$35.705
Dec ’23HK$22.05
HK$40.58
+84.0%
24.3%HK$53.06HK$28.50HK$40.204

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies