Is Zhejiang Leapmotor Technology (SEHK:9863) Undervalued After Its New Dealer Framework Agreement?

How the new framework agreement shapes Zhejiang Leapmotor Technology’s dealer network

The fresh Vehicle Sales and Services Framework Agreement between Zhejiang Leapmotor Technology (SEHK:9863) and dealer partner Mr. Fu Yiqin sets a RMB 250.0 million annual cap on 2026 transactions, giving investors a concrete data point on contracted demand.

Rather than a product launch or earnings release, this update sits squarely in the commercial plumbing of the business. It spells out, in legal language, how many Leapmotor branded vehicles, after sales parts and related services Mr. Fu and his controlled enterprises can buy this year and on what terms.

For anyone watching the stock, the agreement matters because it formalises activity that was already happening through separate contracts and aggregates it under a single umbrella. That makes it easier to track the scale of this specific dealer relationship compared with broader Mainland China and overseas sales channels.

Set against this commercial update, Zhejiang Leapmotor Technology’s shares trade at HK$34.16 after a 1-day share price return that declined 1.04%. This extends a 30-day share price return that fell 9.58% and leaves the year-to-date share price return down 31.07%. The 1-year total shareholder return declined 49.36%, suggesting momentum has been fading despite earlier three-year total shareholder return figures that indicate a much smaller overall decline of 7.68%.

Scan other electric vehicle and clean transport players that screen for 615 high quality undiscovered gems as you assess how Zhejiang Leapmotor Technology’s new dealer agreement fits into your watchlist.

Zhejiang Leapmotor Technology is signing fresh dealer contracts and growing reported revenue, yet the share price has fallen sharply over the past year. Is the current valuation now generous or still demanding?

Most Popular Narrative: 46% Undervalued

The most followed narrative on Zhejiang Leapmotor Technology puts fair value at HK$63.06, well above the last close at HK$34.16. This comparison frames the current share price against a much higher long term earnings and cash flow profile.

Scaling production, deeper vertical integration, and optimized cost management (now showing 14%+ GP margin, targeting 15%) are driving sustained improvements in gross profit margin and operational leverage, creating conditions for higher earnings and robust net margin recovery.

See why 4 investors see Zhejiang Leapmotor Technology as 46% undervalued.

Result: Fair Value of HK$63.06 (UNDERVALUED)

Still, the bullish Zhejiang Leapmotor Technology story could be knocked off course if partnership execution disappoints or if China EV price competition pressures margins more than analysts assume.

Find out about the key risks to this Zhejiang Leapmotor Technology narrative.

Another view on Zhejiang Leapmotor Technology’s valuation

On the flip side of the bullish HK$63.06 fair value narrative, Zhejiang Leapmotor Technology trades on a P/E of 58.1x. That is far above the Asian auto group on 13.5x and a fair ratio of 16.9x, which points to meaningful valuation risk if sentiment cools.

See what the numbers say about this price gap by reviewing the See what the numbers say about this price — find out in our valuation breakdown..

Next Steps

If the mixed tone of Zhejiang Leapmotor Technology’s story so far leaves you undecided, it may be useful to review the underlying data for yourself and then weigh the potential upside while assessing the 3 key rewards.

Looking for more Zhejiang Leapmotor Technology sized ideas?

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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.

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