Asian Value Stocks: Hidden Gems in the New Energy Vehicle Industry

Ladies and gentlemen, buckle up! We're diving into the world of Asian value stocks, and today, we're focusing on three companies in the new energy vehicle (NEV) industry that are estimated to be below fair value. These stocks are poised for a massive breakout, and you don't want to miss out on this opportunity!

First up, we have Zhejiang Leapmotor Technology Co., Ltd. (Leapmotor). This company has been making waves in the NEV industry with its innovative technology and cost-efficient strategies. Leapmotor's revenue surged by 92.06% in 2024, reaching 32.16 billion CNY, and it achieved positive net profit in the fourth quarter of 2024, reaching its quarterly profitability goal one year ahead of schedule. This is a company that knows how to execute and deliver results!



Leapmotor's strategic focus on technological innovation and cost efficiency positions it for long-term growth and profitability. The company has consistently invested in developing its own technologies, which has allowed it to offer high-end features at competitive prices. For example, the Leapmotor B10, launched in March 2025, includes standard lidar and high-level intelligent driving across the series, priced at around 120,000 yuan. This configuration, which includes a self-developed central domain controller and an integrated electronic and electrical architecture, along with Hesai Technology's ATX ultra-long-range lidar and Qualcomm Snapdragon 8650 intelligent driving chip, provides a complete intelligent driving ecosystem at a fraction of the cost of competitors' lidar models. This approach not only attracts customers but also builds a strong brand reputation for innovation and value.

Leapmotor's in-house development and vertical integration strategy have significantly reduced costs. For example, the company has achieved an 88% parts-sharing rate across models on the same platform, which benefits cost control, ensures consistent quality, and simplifies the supply chain. This cost efficiency allows Leapmotor to offer affordable prices without compromising on quality, making its products accessible to a broader market.

Leapmotor's collaboration with Stellantis has accelerated its globalization efforts. The company has established over 400 sales outlets across 13 European countries, indicating a strong push into international markets. This expansion not only diversifies its revenue streams but also positions it to capture a larger share of the global EV market.

However, there are potential risks associated with this strategy. The Chinese new energy vehicle industry is highly competitive, with intense price wars and rapid technological advancements. Leapmotor's success depends on its ability to continue innovating and maintaining cost efficiency in the face of fierce competition from established players like NIO, XPeng, and Li Auto, as well as new entrants.



Next, we have BYD, a company that has been a dominant player in the NEV industry for years. BYD's stock has been on a tear, and for good reason. The company has consistently delivered strong earnings and has a robust product lineup that caters to a wide range of customers. BYD's stock is a no-brainer for any investor looking to gain exposure to the NEV industry.

Finally, we have Xiaomi, a company that has made a name for itself in the consumer electronics industry but is now making a push into the NEV market. Xiaomi's stock has been volatile, but the company's strong brand and innovative products make it a compelling investment opportunity. Xiaomi's NEV division has been growing rapidly, and the company is poised to become a major player in the industry.

So, what's the bottom line? These three companies are estimated to be below fair value, and they offer investors a unique opportunity to gain exposure to the rapidly growing NEV industry. Leapmotor, BYD, and Xiaomi are all poised for long-term growth and profitability, and they should be on every investor's radar. Don't miss out on this opportunity to get in on the ground floor of the next big thing in the NEV industry!