Lantu Motors listed on the Hong Kong Stock Exchange, high-growth performance awaits long-term verification | Big Fish Finance

AI · Lantu Motors’ First Day of Listing Falls Below Offer Price; Why Is Market Sentiment Divided?

On March 19, Lantu Motors (07489.HK), which carries the mission of Dongfeng Group’s new energy transformation, was listed on the Main Board of the Hong Kong Stock Exchange. As the so-called “Top State-Owned High-End New Energy Stock,” its performance on the first day was not particularly impressive.

It opened at HKD 7.5 per share, briefly dipped to HKD 6.4 during trading, with a maximum decline of over 14%. In the afternoon, the decline narrowed, closing at HKD 6.2 per share, with a total market value of approximately HKD 22.816 billion.

From the very first day, the stock broke below the offering price, and market sentiment appears somewhat divided. On one hand, some believe this is mainly due to short-term fluctuations caused by the listing method; on the other hand, some investors are focusing back on fundamentals, especially profitability quality and the certainty of future growth.

Lantu’s Hong Kong listing adopted an “Introduction Listing” route, which involved achieving listing through share distribution and mergers, without issuing new shares or raising funds. This approach helped Dongfeng Group quickly integrate its new energy assets but also left the stock price with little buffer in the early days of trading.

Unlike traditional IPOs, introduction listings do not have cornerstone investors locking in shares, nor do they have a “greenshoe mechanism” to stabilize prices. The stock’s initial performance is more dependent on real-time market negotiations. In the current environment of weak overall trading in Hong Kong stocks, volatility has been further amplified.

Additionally, there is a gap in the price anchor itself. Previously, Dongfeng Group’s privatization implied an approximate price of HKD 10.85 per share, whereas Lantu opened at HKD 7.5, reflecting a market reassessment of the valuation of the new energy sector.

Furthermore, some passive funds, after receiving their share allocations, need to rebalance their holdings according to index rules. This “programmatic selling” has also contributed to selling pressure during the opening phase.

Looking at financial data, Lantu’s expansion over the past three years has been rapid. Revenue grew from RMB 12.75 billion in 2023 to RMB 34.86 billion in 2025, with annual sales increasing from 50,000 to 150,000 vehicles.

Profitability has also improved significantly. The company narrowed its losses substantially in 2024 and achieved a net profit of RMB 1.017 billion in 2025, crossing the breakeven point. During the same period, gross profit margin was 20.9%, relatively high among similar brands. Overseas revenue accounted for 10.8%, supporting its pricing power.

However, the profit structure still invites discussion. In 2025, government subsidies related to revenue amounted to RMB 1.08 billion, nearly matching the net profit for that year. This has led some investors to remain cautious about the sustainability of its profitability.

While the stock price faces pressure, Lantu is accelerating its product development.

On the listing day, the company announced a new model, the “Lantu Taishan X8,” and plans to launch several new vehicles within the year, including models equipped with Huawei L3-level intelligent driving hardware. Investment in intelligent features is becoming a new competitive focus.

From public statements, Lantu aims to downplay its “state-owned background” label and focus more on technology and products. Its L3 autonomous driving testing mileage has exceeded 110,000 kilometers, and it is also advancing self-developed algorithms and large models.

The first-day stock performance appears to be the result of combined effects of capital structure and market liquidity. The concentrated selling pressure caused by the introduction listing is not surprising in the current Hong Kong stock environment.

But for Lantu, the more critical factor remains its operational performance moving forward. After completing asset independence, the company now has a platform for standalone financing, and the market will gradually shift the valuation focus back to performance and products.

Next, the market performance of new models and the degree of reliance on subsidies for profits will be key variables influencing valuation recovery. Compared to the listing method itself, these factors clearly carry more weight.