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Zhejiang Leapmotor Technology Co (9863) Fair Value & Analysis

Consumer Cyclical · HK · Market cap HK$49.8B

ZL Zhejiang Leapmotor Technology Co 9863 · HK
PriceHK$40.18
Fair ValueHK$13.13
Upside-67.3%
Quality44/100
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Healthy Growth
Thin margins · 0.8% net margin
Low debt · generates free cash flow
Trails peers (2/13)
Narrow moat 18/100
Evidence: High Range HK$12.98 – HK$13.26 Share as image

Fair value as of: Aug 13, 2026

From 23 valuation models · updated yesterday

Fair value updated Aug 13, 2026, revised from HK$10.60 to HK$13.13 (+23.9%) since Jul 7, 2026. Share price +10.7% over the past month.

Below-average quality, and screening another 67% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$13.26). The favourable scenario is already priced in.
  • Weak quality (44/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The models converge in a tight band (HK$12.98 to HK$13.26), unusually little disagreement for a valuation.
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Price vs Fair Value (4 years)

HK$73.50 HK$17.90 Fair Value HK$13.13 Sep 2022 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

46‑month range HK$17.90 – HK$73.50 · fair‑value band HK$12.98 – HK$13.26 · the HK$40.18 price screens above the HK$13.13 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Zhejiang Leapmotor Technology Co (9863) currently trades at HK$40.18, while our model-based Fair Value estimate is HK$13.13, implying the stock looks roughly 67.3% overvalued today. The Quality Score stands at 44/100 (below-average quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Zhejiang Leapmotor Technology Co generated revenue of HK$64.7B at a net margin of 0.8%. Revenue grew 73.6% year over year. It earns a return on equity of 4.5%. The balance sheet holds a net cash position of HK$9.7B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$12.98 (bear case) to HK$13.26 (bull case); at HK$40.18, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 47% below its 52-week high and 22% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 32% fair-value upside, at -67%, 9863 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$118.04 HK$223.99 HK$397.60 80
Rev-Margin DCF HK$44.63 HK$54.30 HK$75.89 74
ROIC Compounder HK$11.14 HK$11.25 HK$11.35 72
All 23 models by family
DCF Models
FCF DCF HK$124.84 HK$190.43 HK$399.32 38
5Y Revenue Exit HK$42.35 HK$48.52 HK$60.01 39
5Y EBITDA Exit HK$49.37 HK$62.72 HK$88.28 41
5Y P/E Exit HK$47.55 HK$68.11 HK$91.82 38
10Y Revenue Exit HK$66.77 HK$94.34 HK$99.43 36
10Y EBITDA Exit HK$71.92 HK$109.47 HK$162.76 37
10Y P/E Exit HK$70.59 HK$105.54 HK$152.97 35
Earnings-Based
Graham-Dodd HK$3.15 HK$21.99 HK$30.86 54
Lynch FV HK$11.36 HK$16.23 HK$21.10 50
PEG = 1.0 HK$11.36 HK$16.23 HK$21.10 46
EPV HK$11.14 HK$11.25 HK$11.35 59
Multiples
P/E Multiple HK$7.65 HK$10.20 HK$12.75 63
P/S Multiple HK$5.91 HK$7.88 HK$9.85 58
P/B Multiple HK$5.91 HK$7.88 HK$9.85 55
EV/EBIT HK$11.52 HK$11.88 HK$12.23 53
EV/EBITDA HK$20.53 HK$23.88 HK$27.24 54
EV/Revenue HK$11.18 HK$11.48 HK$11.79 43
Asset-Based
NCAV (Graham) HK$6.24 HK$8.37 HK$12.49 50
Growth DCF
Growth DCF HK$118.04 HK$223.99 HK$397.60 80
Rev-Margin DCF HK$44.63 HK$54.30 HK$75.89 74
Economic Profit
Residual Income HK$9.23 HK$9.08 HK$8.03 61
ROIC Compounder HK$11.14 HK$11.25 HK$11.35 72
Growth Earnings
Growth-Adj P/E HK$15.08 HK$21.54 HK$28.01 68

Widest divergence: DCF Models (HK$94.34) versus Asset-Based (HK$8.37). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$64.7B
Revenue growth (YoY) +73.6%
Net margin 0.8%
Return on equity 4.5%
Free cash flow HK$7.7B FY2025
P/E ratio 79.5 as of Jul 3, 2026
More key figures
Operating margin 0.6%
EPS (TTM) HK$0.0200
Net cash HK$9.7B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 44/100

Of which business quality 48 · Market factors (momentum, volatility) 31

Profitability 34
Margins and returns on capital today
Quality Growth 100
Are margins and returns improving?
Cashflow 68
Earnings quality: real cash, not paper profit
Fin. Strength 40
Balance sheet, leverage, solvency risk
Investment 25
Disciplined investing over empire-building
Low Volatility 63
Calm price path (market factor)
Momentum 24
Price trend over the last 3–12 months (market factor)
52W Momentum 9
Distance to the 52-week high (market factor)
Net Issuance 21
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Zhejiang Leapmotor Technology Co., Ltd. engages in the research and development, production, and sale of new energy vehicles in Mainland China and internationally. The company offers four major series"A, B, C, and D covering sedans, SUVs, and MPVs, with current models on sale such as A10, Lafa5, B01, B10, D19, C16, C10, C11, C01, and T03.

Full company description

Zhejiang Leapmotor Technology Co., Ltd. engages in the research and development, production, and sale of new energy vehicles in Mainland China and internationally. The company offers four major series"A, B, C, and D covering sedans, SUVs, and MPVs, with current models on sale such as A10, Lafa5, B01, B10, D19, C16, C10, C11, C01, and T03. It is also involved in the manufacture and sale of electric vehicles and components; providing electric vehicle charging operation and aftersales services; new energy vehicle retail; technical service and development; and warehousing and sorting. The company was incorporated in 2015 and is headquartered in Hangzhou, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhejiang Leapmotor Technology Co reported revenue of HK$64.7B in FY2025 versus HK$3.1B in FY2021, a compound +113.2%/yr. Reported net income was HK$524M in FY2025.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
HK$64.7B
Latest YoY
+101.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+73.5%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+152.5%
Avg. growth/yr (6Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+186.6%
Revenue +113.2%/yr
FY21 HK$3.1B
FY22 HK$12.4B
FY23 HK$16.7B
FY24 HK$32.2B
FY25 HK$64.7B
Net income
FY21 −HK$2.8B
FY22 −HK$5.1B
FY23 −HK$4.2B
FY24 −HK$2.8B
FY25 HK$524M

9863 screens 67% overvalued. Compare with Toyota Motor Corporation →

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Cite: Fair Value Calculator (2026). "Zhejiang Leapmotor Technology Co Fair Value". https://www.fairvalue-calculator.com/stock/9863

Peer Group

Auto Manufacturers · 119 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 44 · Below median
Fair Value upside −67% · Bottom 25%
Return on equity (TTM) 4% · Below median
Return on assets 0% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 1% · Below median
Revenue growth 74% · Top 25%
Debt / equity 0.16× · Higher than median

Valuation Multiples vs Auto Manufacturers median · lower = cheaper

P/E (TTM) 79.5× · Pricier than 75% of peers
P/B 3.52× · Pricier than 75% of peers
P/S (TTM) 0.77× · Pricier than median
P/FCF 0.8× · Cheaper than median
EV/EBITDA 37.2× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 31
FUTURE 100 · sector 33
PAST 18 · sector 20
HEALTH 92 · sector 94
DIVIDEND 0 · sector 46

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Auto Manufacturers stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Toyota Motor Corporation TM $188.22 $247.83 +32%
BYD Company 81211 HK$76.90 HK$48.59 -37%
Hyundai Motor Company 005380 418,500 KRW 567,393 KRW +36%
Bayerische Motoren Werke Aktiengesellschaft BMWM5N 1,909 MXN 2,610 MXN +37%
Volkswagen AG VOW 2,149 CZK 7,783 CZK +262%
Maruti Suzuki India Limited MARUTI ₹13,875 ₹8,236 -41%
Kia Corporation 000270 135,600 KRW 341,751 KRW +152%
Weichai Power Co 2338 HK$36.40 HK$28.46 -22%
Geely Automobile Holdings 80175 HK$15.50 HK$19.14 +23%
Bajaj Auto Limited BAJAJAUTO ₹11,700 ₹4,574 -61%

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Frequently asked questions

Is Zhejiang Leapmotor Technology Co (9863) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$13.13 versus a price of HK$40.18, about −67% (overvalued).
What is the fair value of 9863?
Our model-based fair value for Zhejiang Leapmotor Technology Co is HK$13.13 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$40.18.
What is the quality score of 9863?
Zhejiang Leapmotor Technology Co has a Quality Score of 44/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Zhejiang Leapmotor Technology Co (9863)?
Zhejiang Leapmotor Technology Co reported trailing-twelve-month revenue of about HK$64.7B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 9863?
The net profit margin of Zhejiang Leapmotor Technology Co is about 0.8%, meaning it keeps roughly 0.8% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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