Lyon: Maintaining Zero Sports' (09863) “Outperform the Market” rating, target price of HK$60

The Zhitong Finance App learned that Lyon released a research report saying that Zero Sports Auto (09863) held a technical conference to launch a number of new technologies. The first batch of seven new cars equipped with related technology is expected to be unveiled in 2027. The bank believes that the company's integrated self-development should strengthen cost advantages and product differentiation, and transform it into sales momentum, maintain the 2026/2027 delivery forecast of 1 million/1.35 million vehicles, and reaffirm the “outperform the market” rating and target price of HK$60.

According to the bank, the company plans to launch about seven new models under the main brand next year, including five-seater/six-seater SUVs, and launch sub-brand variable space models on the LEAP 5.0 platform; in the 2027 sales forecast, about 400,000 vehicles will be exported and about 950,000 will be sold domestically.

The bank maintained its 2026/2027/2028 net profit forecast of 2.8 billion/4.1 billion yuan/4.6 billion yuan, respectively, and indicated that management reaffirmed that all overseas profits from 2026 to 2027 will be reinvested, and that overseas joint ventures may start contributing revenue in 2028.