9863.HK Stock Today: January 07 — FAW $533m Stake Fuels 2026 1m Goal
Leapmotor stock is on UK watchlists today as FAW’s US$533 million purchase of a 5% stake and a tech pact add fresh backing to the 2026 one million sales goal. Alongside the Stellantis partnership, the setup could speed overseas expansion and improve margin visibility. Shares of 9863.HK last traded around HK$47.88 within a 52‑week range of HK$29.65 to HK$76.30. We break down what this means for valuation, technicals, and near‑term catalysts UK investors should track.
Why FAW and Stellantis matter now
FAW’s US$533 million for a 5% holding brings capital, supplier access, and technology cooperation that can lift Leapmotor’s product cadence and cost base. Management frames the deal as fuel for scale and overseas push, a theme that matters for valuation and cash flow. See coverage at Mexico Business News.
The Stellantis partnership strengthens distribution and manufacturing optionality outside China, improving visibility on export volumes. For UK investors, this broadens demand drivers beyond domestic cycles and could ease pricing pressure through mix and scale. Execution will hinge on homologation, logistics, and local support in target markets, with updates a key share price lever.
Management targets one million vehicle sales in 2026 and over four million annually within a decade. Hitting these numbers would transform fixed cost absorption and margins, supporting a stronger multiple. The ambition is high, and delivery milestones will be scrutinised. Reference: Yahoo Finance.
Valuation, profitability, and balance sheet check
At about HK$47.88, Leapmotor trades near 1.28x TTM sales and 4.74x book, with a negative P/E of roughly -107 given losses. EV to sales is 1.21x, pointing to modest revenue multiples versus high-growth peers. The Meyka grade is B with a Hold view, reflecting solid growth but a need to prove sustained profitability at scale.
TTM gross margin is 12.66% while operating and net margins remain slightly negative at -1.82% and -1.21%. Encouragingly, operating cash flow per share is 8.12 and free cash flow per share is 5.68, implying a 12.66% FCF yield. 2024 revenue grew 92%, with strong gains in operating and free cash flow, yet earnings remain in the red.
The current ratio sits at 0.92, signalling tight liquidity, and working capital is about -HK$2.52bn. Debt to equity is a manageable 0.23, and cash per share is 7.92. The cash conversion cycle is a favourable -160 days, aided by payables. Scaling volumes and disciplined capex will be important to ease near-term funding strain.
Price action, technicals, and near-term catalysts
RSI at 49.87 is neutral, ADX at 23.92 suggests a mild trend, and MACD is below signal though improving. Bollinger centre is around HK$49.48, with Keltner mid near HK$49.92. Short-term model projections point to HK$50.68 over a month and HK$58.72 over a quarter. These are directional guides, not guarantees.
Recent range is HK$47.38 to HK$49.42 with ATR near 2.11. The 50-day average is HK$52.60 and the 200-day is HK$57.34. Bollinger lower band near HK$46.60 marks first support, with resistance around HK$52.36. UK investors should also consider sterling volatility and brokerage costs when trading Hong Kong-listed shares.
Watch integration updates with FAW, deployment progress under the Stellantis partnership, new model launches, and overseas order flow. Earnings are scheduled for 9 March 2026 at 10:59 UTC, a key checkpoint for margins and guidance. Any clarity on export timelines and 2026 run-rate traction could reset expectations for Leapmotor stock.
Final Thoughts
For UK investors, Leapmotor stock now has two strong levers: FAW’s capital and cooperation, and the Stellantis partnership that can open overseas channels. Together, they support the bold 2026 one‑million sales aim and longer-term scale effects. The valuation at roughly 1.28x sales looks reasonable for a high-growth EV player, but losses and a sub‑1x current ratio flag near-term execution and liquidity risk. Technicals are neutral, with defined support and resistance levels. Our takeaway is practical: track quarterly delivery cadence, export milestones, and margin trend into the March print. If management shows steady progress on volumes and pricing, upside to medium-term projections becomes more credible. Position sizing and FX awareness remain key for UK portfolios.
FAQs
Is Leapmotor stock a buy for UK investors today?
It suits investors comfortable with growth risk. Valuation is modest at about 1.28x sales, but profits are not yet steady and liquidity is tight. Near-term upside likely depends on export momentum and margin gains. Consider a staged approach and watch March results for confirmation.
How does FAW’s US$533 million investment help Leapmotor?
It adds capital, supplier reach, and technology collaboration that can improve costs and speed product launches. Together with Stellantis, it supports overseas expansion and scale benefits. Execution on joint programs and clear delivery milestones will be vital to convert this backing into sustained profitability.
What is the 2026 sales target and why does it matter?
Management aims for one million vehicles in 2026 and over four million annually within a decade. Reaching these levels would drive fixed cost absorption, stronger margins, and potentially a higher multiple. Misses could pressure the share price, so quarterly delivery updates are crucial.
What technical levels should traders watch on Leapmotor stock?
Initial support sits near HK$46.60 with resistance around HK$52.36. The 50-day average is HK$52.60 and the 200-day is HK$57.34. RSI is neutral near 50. A move above the 50-day average with rising volume would improve momentum odds in the near term.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
