{"id":10132,"date":"2026-05-10T02:38:08","date_gmt":"2026-05-10T02:38:08","guid":{"rendered":"https:\/\/www.europesays.com\/netherlands\/10132\/"},"modified":"2026-05-10T02:38:08","modified_gmt":"2026-05-10T02:38:08","slug":"a-look-at-zhejiang-leapmotor-technology-sehk9863-valuation-as-stellantis-partnership-expands-european-ev-production-plans","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/netherlands\/10132\/","title":{"rendered":"A Look At Zhejiang Leapmotor Technology (SEHK:9863) Valuation As Stellantis Partnership Expands European EV Production Plans"},"content":{"rendered":"\n

Never miss an important update on your stock portfolio<\/a> and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE.<\/p>\n

Stellantis and Zhejiang Leapmotor Technology (SEHK:9863) are expanding their cooperation, including potential joint electric vehicle production in Spain and broader purchasing ties. This move could reshape Leapmotor\u2019s role in the European battery electric vehicle market.<\/p>\n

See our latest analysis for Zhejiang Leapmotor Technology.<\/a><\/p>\n

After this partnership news, the recent 2.05% 1 day and 8.93% 90 day share price returns suggest momentum has been rebuilding, even though the 1 year total shareholder return decline of 18.43% still weighs on longer term performance.<\/p>\n

If this EV deal has your attention, it could be a good moment to widen your watchlist with 32 robotics and automation stocks<\/a><\/p>\n

With Leapmotor trading at HK$47.8, carrying an indicated intrinsic discount of 64% and a 51% gap to analyst targets, you have to ask: is this genuine mispricing, or is the market already factoring in future growth?<\/p>\n

Most Popular Narrative: 34.5% Undervalued <\/p>\n

Against the last close of HK$47.8, the most followed narrative anchors fair value around HK$73, using a detailed cash flow and earnings roadmap built on analyst assumptions and a 10.95% discount rate.<\/p>\n

International expansion (leveraging Stellantis and FAW partnerships) in multiple regions with localized production and distribution (over 600 overseas outlets, production in Malaysia\/Europe starting 2026, leadership in overseas start up exports) increases volume potential and diversifies revenue streams, while regulatory tailwinds (carbon credits, EV incentives) drive additional non auto and auto revenue.<\/p>\n

Read the complete narrative.<\/a><\/p>\n

Curious what earnings power is baked into that valuation, how fast analysts think revenue scales, and what margin profile underpins it all? The full narrative lays out a detailed path for top line growth, profitability and the future multiple the stock would need to trade on for HK$70 to HK$73 to make sense.<\/p>\n

Result: Fair Value of HK$72.96 (UNDERVALUED)<\/p>\n

Have a read of the narrative in full and understand what’s behind the forecasts.<\/a><\/p>\n

However, there is still a risk that heavier reliance on partnerships, sector wide caution on 2026 sales, and ongoing EV price competition could challenge this upbeat narrative.<\/p>\n

Find out about the key risks to this Zhejiang Leapmotor Technology narrative.<\/a><\/p>\n

Another View: Earnings Multiple Raises A Red Flag <\/p>\n

While the SWS model points to a 64.5% discount to fair value, the current P\/E of 109.6x tells a very different story. It is far above the Asian auto sector at 19.1x, the peer average at 12.8x, and a fair ratio of 21.5x. This means a lot has to go right for today\u2019s price to hold up.<\/p>\n

For investors, that kind of gap between the current P\/E and the fair ratio can indicate either a genuine opportunity in a fast growing business or a valuation that could reset quickly if sentiment cools. Which side of that trade do you feel more comfortable being on?<\/p>\n

See what the numbers say about this price \u2014 find out in our valuation breakdown.<\/a><\/p>\n

\"SEHK:9863<\/a> SEHK:9863 P\/E Ratio as at May 2026 Next Steps <\/p>\n

With both risks and rewards in play, sentiment on Leapmotor is clearly split. Check the underlying data now and weigh it against the 3 key rewards and 1 important warning sign.<\/p>\n

Looking for more investment ideas? <\/p>\n

If Leapmotor is on your radar, do not stop there. The best opportunities often show up when you compare a few different angles side by side.<\/p>\n

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.<\/p>\n

Companies discussed in this article include 9863.HK<\/a>.<\/p>\n

Have feedback on this article? Concerned about the content? Get in touch<\/a> with us directly. Alternatively, email editorial-team@simplywallst.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors…\n","protected":false},"author":2,"featured_media":10133,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[61],"tags":[8448,797,103,8447],"class_list":{"0":"post-10132","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stellantis","8":"tag-battery-electric-vehicle","9":"tag-fair-value","10":"tag-stellantis","11":"tag-zhejiang-leapmotor-technology"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/netherlands\/wp-json\/wp\/v2\/posts\/10132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/netherlands\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/netherlands\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/netherlands\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/netherlands\/wp-json\/wp\/v2\/comments?post=10132"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/netherlands\/wp-json\/wp\/v2\/posts\/10132\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/netherlands\/wp-json\/wp\/v2\/media\/10133"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/netherlands\/wp-json\/wp\/v2\/media?parent=10132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/netherlands\/wp-json\/wp\/v2\/categories?post=10132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/netherlands\/wp-json\/wp\/v2\/tags?post=10132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}