Leapmotor H1 profit jumps 6x, cuts FY target to CNY 3B

Leapmotor reported H1 net profit of CNY 208.4 million, up more than sixfold, as revenue jumped 57 percent to CNY 38.11 billion.

"In the first half of 2026, our export is 96,294 units, up by 72 percent, exceeding the year total export of 2024," CFO Li Tengfei said on the earnings call.

Deliveries rose 60.8 percent to 356,487 units in H1, with July volume exceeding 100,000 units for the first time. Gross margin fell to 11.7 percent from 14.1 percent a year earlier, though Q2 margin improved to 12.6 percent. The company cut its full-year net profit guidance to about CNY 3 billion from CNY 5 billion, citing raw material inflation.

The guidance cut reflects margin pressure from lithium carbonate prices, even as the company confirmed plans to enter the robotics business. Shares were little changed after hours at $42.76, with analysts maintaining a Strong Buy consensus, a full-year EPS forecast of $0.38 and a price target implying 42 percent upside.

Leapmotor said H1 exports reached 96,294 units, up 72 percent year over year, with a network of more than 1,000 stores across 45 countries. Europe remains the primary overseas market, while South America, Southeast Asia and Australia are growth areas. The company targets 150,000 overseas sales in 2026 and 200,000 in 2027.

On robotics, CFO Li Tengfei confirmed the company has plans in the sector, using its full-stack self-developed EV capabilities. "We do have our own plans in this regard, and in the near future, you will hear our official announcement of a robots-related business announcement," he said.

The company guided to a full-year gross profit margin of 13 percent to 14 percent and vehicle sales gross margin of about 10 percent to 11 percent. Cash and cash equivalents stood at CNY 38.59 billion at end-June. Leapmotor's market share in China's new-energy vehicle market reached 5.71 percent at end-June, up from 4.22 percent at end-Q1.

Product momentum was broad across the A, B, C and D series. The A10, launched in March with lidar and autonomous driving under CNY 100,000, reached 100,000 units produced by August 7. The D19 large SUV, launched in April, exceeded 10,000 monthly sales in July. The D99 flagship MPV, priced above CNY 300,000, uses CATL battery cells and Qualcomm's 8295 chips.

The Stellantis partnership remains central to international expansion. Leapmotor International, a joint venture with Stellantis, is localizing production in Spain, Malaysia and Brazil. The Spanish factory is scheduled to begin B10 production in 2027, while the Malaysian plant has already started C10 assembly.

The guidance cut points to near-term margin pressure, but the robotics expansion and overseas growth offer new avenues for valuation. Investors will watch the September 16 technology launch, where the company plans to unveil new autonomous driving solutions.

This article is for informational purposes only and does not constitute investment advice.