Twenty-year-old Coquard, in his first year as a road pro, triumphed on the 164.5km stage from Kuala Terengganu to Tanah Merah to secure his most impressive road victory to date.
Coquard, who previously won two stages at the Etoile des Bessegges and took silver for France in the London 2012 Omnium, finished ahead of Briton Andrew Fenn (Omega Pharm -Quick-Step) and stage six winner Francesco Chicchi (Vini Fantini).
Team Nippo–De Rosa rider Julian Arredondo kept his lead over Pieter Weening (Orica GreenEdge) on GC by finishing in the leading 83-rider bunch.
"The sprint was difficult, with a lot of fight," Coquard told Cyclingnews. "At 500m Kévin Reza launched me and after at 200m I was on the wheel of Chicchi and I started my sprint. I am so happy because the win at Tour de Langkawi has been difficult for me.
"I broke my derailleur [earlier in the stage race] and yesterday my legs were no good.
"Today, I am very happy. It's my third win of the year. It's a very good day for Europcar and for me."
Points leader Andrea Guardini was unable to compete for the win after becoming blocked off between Fenn and Chicchi.
Coquard celebrated by revealing his new tattoo, which reads 'Silver LONDON'.
"Before coming to this race I had a challenge with my sport director that if I win a stage I will have to show this tattoo," he said.
"I'm very proud of this tattoo because the silver medal for me at the Olympic Games is my best memory to date."