CITIC Securities: Upgrades Zero Run's Target Price to HK$80, Reiterates "Outperform" Rating

CITIC Securities has released a research report, upgrading Zero Run's (09863) target price by 11.1%, from HK$72 to HK$80, and reiterating its "Outperform" rating.

CITIC Securities notes that Zero Run recorded a profit of approximately RMB33 million in the first half of 2025, exceeding expectations for a balanced cash flow. The company has upgraded its annual sales target from 50-60,000 units to 58-65,000 units, mainly driven by strong new car orders in August, with CITIC Securities expecting this figure to continue growing further compared to July's 5,000 units.

CITIC Securities expects that as more new models are released, Zero Run's total sales volume will reach 90-100,000 units by 2026, with a profit rate of 2% to 3% (per vehicle RMB2,000-3,000). It has upgraded its sales forecast for 2025 and 2026 to 60.87 million and 94.6 million units, respectively.