Zhejiang Leapmotor Technology Co., Ltd. Just Beat EPS By 200%: Here's What Analysts Think Will Happen Next

As you might know, Zhejiang Leapmotor Technology Co., Ltd. (HKG:9863) just kicked off its latest half-year results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 5.3% to hit CN¥38b. Zhejiang Leapmotor Technology also reported a statutory profit of CN¥0.15, which was an impressive 200% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the consensus forecast from Zhejiang Leapmotor Technology's 20 analysts is for revenues of CN¥103.5b in 2026. This reflects a sizeable 32% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 274% to CN¥1.88. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥103.6b and earnings per share (EPS) of CN¥2.48 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.

See our latest analysis for Zhejiang Leapmotor Technology

It might be a surprise to learn that the consensus price target was broadly unchanged at HK$64.94, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Zhejiang Leapmotor Technology analyst has a price target of HK$99.33 per share, while the most pessimistic values it at HK$51.14. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Zhejiang Leapmotor Technology's growth to accelerate, with the forecast 74% annualised growth to the end of 2026 ranking favourably alongside historical growth of 60% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Zhejiang Leapmotor Technology to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Zhejiang Leapmotor Technology. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Zhejiang Leapmotor Technology analysts - going out to 2028, and you can see them free on our platform here.

We also provide an overview of the Zhejiang Leapmotor Technology Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.