Zhejiang Leapmotor Technology Co., Ltd. (9863.HK) stock analysis

In our weekly check, Zhejiang Leapmotor Technology Co., Ltd. is graded B (A to F). Of 22 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 2.

About Zhejiang Leapmotor Technology Co., Ltd.

Zhejiang Leapmotor Technology Co., Ltd. is a Consumer Cyclical company (Auto - Manufacturers) based in China, listed on HKSE as 9863.HK.

What our checks show for 9863.HK

Red flags

• The net margin is only 0.9%: little room if costs rise.
• Return on capital (ROCE) is only 2%.

Warning signs

• Earnings per share fell 53% a year over the last 3 years.
• The price swings a lot: 47.1% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 59% from a peak. Would you have held through that?
• The share count grew by 19.3% in 2 years: each shareholder owns a smaller slice.

Strengths

• Debt is low: 0.28x equity.
• The net margin rose by 91.8 points over 5 years, to 0.9%.
• The gross margin is 13.3% and has risen by 57.6 points: pricing power is holding.
• Operating cash flow is 16.72x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 150% a year over the next years.
• Analysts expect revenue to grow about 34.1% a year over the next years.

Similar companies

HMC · MBGAF · P911.DE · F · VLKAF · BMW.DE

Questions

What grade does Zhejiang Leapmotor Technology Co., Ltd. (9863.HK) have?

In our weekly check, Zhejiang Leapmotor Technology Co., Ltd. is graded B (A to F). Of 22 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 9863.HK stock?

This week's biggest flags for Zhejiang Leapmotor Technology Co., Ltd.: Thin margins, Low return on capital, Weak EPS growth. In total 6 of 22 checks show a warning or a red flag.

What does Zhejiang Leapmotor Technology Co., Ltd. do?

Zhejiang Leapmotor Technology Co., Ltd. is a Consumer Cyclical company (Auto - Manufacturers) based in China, listed on HKSE as 9863.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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