CITIC Securities: Leapmotor SUV D19 pricing is competitive, maintaining "Outperform" rating

CITIC Securities released a research report stating that Leapmotor has launched its first flagship full-size hybrid SUV D19, priced competitively, targeting the high-end SUV market priced between RMB 250,000 and 300,000, and is expected to be launched in the first half of 2026. The target price for Leapmotor remains at HKD 80 with an "outperform the market" investment rating. The firm believes that Leapmotor continues its high cost-performance strategy with the D19, prioritizing battery capacity over fuel consumption. All models are equipped with CATL battery cells, dual Qualcomm 8797 chips, and VLA intelligent driving models, aligning with recent policy directions and consumer demands. In addition, the upcoming 2026 regulations require plug-in hybrid electric vehicles (PHEVs) to meet stricter engine standards, including the use of higher quality batteries. According to the firm’s calculations, fuel consumption needs to be reduced by approximately 4.1%. The firm expects that regulators' emphasis on improving engine quality will enhance the confidence of hesitant car buyers, while PHEVs with longer ranges are expected to perform better, as they can minimize fuel consumption while maintaining sufficient pure electric range, alleviating range anxiety