Zhejiang Leapmotor Technology Co., Ltd. Fundamental Analysis (HKSE: 9863.HK)
Zhejiang Leapmotor Technology Co., Ltd. Fundamental Analysis (HKSE: 9863.HK)
Zhejiang Leapmotor Technology Co., Ltd. (HKSE: 9863.HK) shows weak financial fundamentals with a PE ratio of 89.91, profit margin of 0.83%, and ROE of 3.97%. The company generates $62.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 9863.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak9863.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate9863.HK shows balanced valuation metrics.
Growth Score
Moderate9863.HK shows steady but slowing expansion.
Financial Health Score
Moderate9863.HK shows balanced financial health with some risks.
Profitability Score
Weak9863.HK struggles to sustain strong margins.
Key Financial Metrics
Is 9863.HK Expensive or Cheap?
P/E Ratio
9863.HK trades at 89.91 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 9863.HK's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Zhejiang Leapmotor Technology Co., Ltd. at 3.50 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 49.25 times EBITDA. This signals the market has high growth expectations.
How Well Does 9863.HK Make Money?
Net Profit Margin
For every $100 in sales, Zhejiang Leapmotor Technology Co., Ltd. keeps $0.83 as profit after all expenses.
Operating Margin
Core operations generate 0.27 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.97 in profit for every $100 of shareholder equity.
ROA
Zhejiang Leapmotor Technology Co., Ltd. generates $0.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Zhejiang Leapmotor Technology Co., Ltd. produces operating cash flow of $12.26B, showing steady but balanced cash generation.
Free Cash Flow
Zhejiang Leapmotor Technology Co., Ltd. generates strong free cash flow of $7.65B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.51 in free cash annually.
FCF Yield
9863.HK converts 16.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
89.91
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.009
vs 25 benchmark
How 9863.HK Stacks Against Its Sector Peers
| Metric | 9863.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 89.91 | 27.12 | Worse (Expensive) |
| ROE | 3.97% | 952.00% | Weak |
| Net Margin | 0.83% | -4912.00% (disorted) | Weak |
| Debt/Equity | 0.31 | 0.65 | Strong (Low Leverage) |
| Current Ratio | 0.93 | 2.28 | Weak Liquidity |
| ROA | 0.86% | 736496.00% | Weak |
9863.HK outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Zhejiang Leapmotor Technology Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary