Why Zhejiang Leapmotor Technology (SEHK:9863) Could Be 43% Undervalued Following Half Year Earnings
Zhejiang Leapmotor Technology (SEHK:9863) caught investor attention after reporting half year 2026 earnings. Sales reached CNY 38,106.55 million and net income was CNY 208.41 million. Basic earnings per share were CNY 0.15.
The latest half year results came alongside mixed trading in Zhejiang Leapmotor Technology, with the share price at HK$37.78 after a 1 day share price return of 2.27%, while the year to date share price return is down 23.77% and the 1 year total shareholder return is down 39.79%, indicating that recent earnings strength has not yet translated into a sustained shift in sentiment.
Compare Zhejiang Leapmotor Technology's latest move with a curated group of new energy and high growth peers screened as 617 high quality undiscovered gems to see how the story compares.
Strong headline numbers and a share price still well below past 1 year levels put Zhejiang Leapmotor Technology at an interesting crossroads. The key question is whether the current risks still justify taking the buyer side at this valuation, or not.
Most Popular Narrative: 43.2% Undervalued
At a last close of HK$37.78 versus a narrative fair value of HK$66.50, Zhejiang Leapmotor Technology is framed as materially mispriced, with that gap anchored in long term growth and profitability projections rather than short term trading swings.
The company's focus on affordable, intelligently connected vehicles and continued R&D investment in proprietary smart driving systems (urban NOA, in-house AR-HUD, and full-stack autonomous solutions) enhances product differentiation, catering to growing consumer demand for high-tech mobility and supporting both top-line growth and margin expansion.
Read the complete narrative. Read the complete narrative.
Investors may want to understand what kind of revenue curve and margin profile underpin that gap. The most followed narrative describes expectations for rapid growth, rising profitability and a richer future earnings multiple. The specific mix of growth, margins and discount rate is where the story starts to get more detailed.
Result: Fair Value of HK$66.50 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this Zhejiang Leapmotor Technology narrative still leans heavily on smooth overseas expansion and partnership execution, which could pressure margins if integration or competition becomes challenging.
Find out about the key risks to this Zhejiang Leapmotor Technology narrative.
Another View: Multiples Paint A Very Different Picture
The SWS DCF model points to undervaluation for Zhejiang Leapmotor Technology, but the earnings multiple tells a tougher story. The stock trades on a P/E of 64.4x, compared with 13.1x for the Asian Auto industry, 8.5x for peers and a fair ratio of 19x. That gap suggests meaningful valuation risk if the market leans back toward those lower multiples. The question is which anchor investors might consider more informative.
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
With sentiment on Zhejiang Leapmotor Technology clearly divided, it makes sense to move quickly and test the numbers against your own expectations. To see what the current optimism is based on, take a closer look at the 3 key rewards.
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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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