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NEW YORK - SunCar Technology Group Inc. (NASDAQ: SDA), a prominent player in China’s auto e-insurance and B2B auto services market with a market capitalization of $548.52 million, announced today it has been awarded a contract to create and manage the insurance management platform for Leapmotor, one of the fastest-growing electric vehicle (EV) manufacturers in China. According to InvestingPro data, SunCar has demonstrated strong revenue growth of 29.36% over the last twelve months, despite challenging market conditions.
The contract signifies an expansion of SunCar’s relationship with Leapmotor, evolving from a traditional insurance agency to a technology partner. The new platform will be integrated into Leapmotor’s mobile app ecosystem, providing services such as insurance issuance, claims processing, and accident services to support Leapmotor’s growing customer base. InvestingPro analysis reveals that SunCar operates with a moderate level of debt and maintains a current ratio of 1.29, indicating adequate liquidity to meet short-term obligations.
Leapmotor, established in 2015, has made significant strides in the EV market, delivering 293,724 vehicles in 2024, which represents a growth of over 104% from the previous year. In the final quarter of 2024, the company’s monthly deliveries surpassed 40,000 units. The company’s revenue reached over 20 billion HKD in 2024, according to the Financial Times.
The insurance platform developed by SunCar will centralize Leapmotor’s insurance operations, automate policy issuance and renewal, enable digital claims processing, and coordinate post-accident services, all within Leapmotor’s customer app.
Ye Zaichang, Chairman and CEO of SunCar Technology, commented on the partnership, "This contract transforms our relationship with Leapmotor from service provider to technology partner. By powering their insurance infrastructure, we’re positioned to grow alongside yet another one of China’s most promising EV manufacturers."
SunCar Technology Group Inc., founded in 2007, has established a leadership position in China’s B2B auto services market and the auto eInsurance market for electric vehicles. The company operates cloud-based platforms that connect drivers with a range of auto services and insurance options through a network of sales partners.
The information for this news article is based on a press release statement from SunCar Technology Group Inc. InvestingPro subscribers have access to additional insights, including 8 more ProTips and comprehensive financial metrics that could help evaluate SunCar’s investment potential. The company’s overall financial health score is currently rated as WEAK, with the stock experiencing significant price volatility and a year-to-date decline of 47.67%.
In other recent news, SunCar Technology Group Inc. has secured a $1.93 million contract with China Construction Bank to manage a car wash program in Hunan province, set to conclude in December 2026. This agreement marks a strategic expansion in SunCar’s banking partnerships, highlighting its role as an automotive ecosystem operator. Additionally, SunCar has signed new contracts with China Pacific Insurance Company’s Zhejiang and Jiangsu branches, expanding its service network to ten major provinces and aiming to double its coverage by the end of 2025. SunCar’s strategic partnership with a leading global electric vehicle manufacturer has also grown significantly, with insurance brokerage services reaching approximately $40 million by the end of the year, covering 48 Chinese cities.
BTIG analysts have maintained a Buy rating and a $12 price target for SunCar, following a secondary share offering that raised $49.7 million, excluding the greenshoe option. Despite the stock price decline, BTIG confirmed that SunCar’s long-term growth expectations remain intact, with plans to invest in new partnerships and AI initiatives. SunCar has also announced a $30 million share buyback program, reflecting management’s confidence in the company’s valuation. This buyback program, detailed in a recent SEC filing, is part of SunCar’s broader capital allocation strategy, with the timing of repurchases subject to market conditions.
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