Industry Rating - The industry investment rating is maintained at "Outperform the Market" [1] Core Insights - In September 2025, total sales of two-wheeled fuel motorcycles reached 1.554 million units, representing a year-on-year increase of 11.8%. Exports were 1.174 million units, up 20.6%, while domestic sales were 380,000 units, down 8.8% [4][10] - For motorcycles above 250cc, sales in September were 87,000 units, a year-on-year increase of 13.1%. Exports were 53,000 units, up 39.0%, and domestic sales were 33,000 units, down 12.7% [4][10] - Electric motorcycle sales surged to 32,000 units in September, marking a significant year-on-year increase of 184.5% [20] - The all-terrain vehicle (ATV) domestic factory shipments reached 17,000 units, reflecting a year-on-year growth of 10.2% [20] Summary by Relevant Sections Overall Industry Performance - Total sales in September reached 1.554 million units, with a cumulative total of 12.816 million units for the year, showing a 13% year-on-year increase [5] - Exports for the entire industry were 1.174 million units, up 21%, while domestic sales were 380,000 units, down 9% [5] Two-Wheeled Fuel Motorcycles - Total sales for two-wheeled fuel motorcycles in September were 105,000 units, down 30% year-on-year, with exports at 97,000 units, down 31%, and domestic sales at 8,000 units, down 13% [22] - For motorcycles above 250cc, total sales were 12,000 units, up 30.1% year-on-year, with exports at 7,000 units, up 75.2%, and domestic sales at 5,000 units, down 7.5% [22] Key Companies - Changan Power reported 32,000 units in electric motorcycle sales, a 184.5% increase year-on-year [20] - Longxin General's total sales reached 25,400 units, a 29.6% increase year-on-year, with three-wheeled motorcycle sales at 25,000 units, up 29.6% [26] - Qianjiang Motorcycle's total sales for two-wheeled fuel motorcycles were 37,800 units, down 21% year-on-year, while sales for motorcycles above 250cc were 13,000 units, up 85% [32]

Group 1 - The core viewpoint of the news is that Longxin General has seen a stock price increase of 5.14% over the past three days, with a current price of 13.70 CNY per share and a market capitalization of 28.134 billion CNY [1] - Longxin General's main business includes motorcycles and engines (74.58% of revenue), general machinery products (22.41%), high-end components (1.26%), large commercial generator sets (1.03%), and others (0.72%) [1] Group 2 - According to data, a fund under CICC has Longxin General as its top holding, with a current holding of 49,200 shares, representing 0.87% of the fund's net value [2] - The CICC fund has achieved a year-to-date return of 33.07% and a one-year return of 37.79%, ranking 1461 out of 4219 and 1178 out of 3877 respectively [2] - The fund managers, Geng Shuaijun and Wang Yangfeng, have had varying tenures and performance, with Geng achieving a best return of 50.33% during his tenure [2]

Core Insights - Longxin General has seen a stock price increase of 5.14% over the past three days, closing at 13.70 CNY per share with a market capitalization of 28.134 billion CNY [1] Company Overview - Longxin General Power Co., Ltd. is located in Chongqing and was established on June 8, 2007, with its listing date on August 10, 2012 [1] - The company's main business segments include motorcycles and engines (74.58% of revenue), general machinery products (22.41%), high-end components (1.26%), large commercial generator sets (1.03%), and others (0.72%) [1] Fund Holdings - Tianhong Fund has a significant holding in Longxin General, with its Tianhong Guozheng 2000 Index Enhanced A fund (017547) being the largest shareholder, holding 43,600 shares, which constitutes 0.85% of the fund's net value [2] - The fund has generated a floating profit of approximately 10,500 CNY today and 29,200 CNY during the three-day price increase [2] Fund Performance - Tianhong Guozheng 2000 Index Enhanced A fund was established on March 23, 2023, with a current size of 27.0544 million CNY and has achieved a year-to-date return of 45.6% [2] - The fund's one-year return stands at 53.67%, ranking 487 out of 3,877 in its category [2]

Core Viewpoint - Chongqing's motorcycle giants, Longxin General and Zongshen Power, are experiencing significant profit growth under the leadership of Zuo Zongshen, with both companies expected to report substantial net profit increases by the third quarter of 2025 [2][8] Group 1: Company Performance - Longxin General and Zongshen Power are projected to achieve net profits of 15.2 billion to 16.2 billion yuan and 6.65 billion to 7.82 billion yuan respectively in the first three quarters of 2025, marking year-on-year increases of 69.13% to 80.26% and 70% to 100% [8] - In 2024, Zongshen Power's revenue reached 10.384 billion yuan, a year-on-year growth of 29.84%, with a net profit of 461 million yuan, up 27.45% [5] - Longxin General's "Wuji" brand has become a key driver of growth, with revenue from this series reaching 1.98 billion yuan in the first half of 2025, a 30.23% increase, and export sales rising by 83.31% [10] Group 2: Market Position and Strategy - Zongshen Power and Longxin General ranked second and third in motorcycle sales in China in 2024, with sales of 1.8 million and 1.54 million units respectively [2][6] - Zuo Zongshen has strategically focused on the motorcycle core business, avoiding diversification into real estate and mining, which has contributed to sustained growth [5] - The integration of Longxin General into Zongshen Power's operations has positioned the combined entity as the leading motorcycle manufacturer in China [2][6] Group 3: International Expansion - Longxin General has established a sales network with 1,292 outlets overseas, surpassing the 1,053 outlets in China, indicating a strong international presence [11] - Zongshen Power's domestic and international sales are nearly equal, with domestic sales accounting for 50.23% and international sales 49.77% [12] Group 4: Future Prospects - Zongshen Power is exploring opportunities in the low-altitude economy, with its aviation subsidiary, Zongshen Aviation, being one of the first private companies in China to successfully develop aviation engines [12] - Despite the positive outlook, Zongshen Power recently announced the termination of its IPO plans for Zongshen Aviation due to strategic considerations and market conditions [13]

Core Viewpoint - The "street vendor economy" sector saw a 0.55% increase on October 24, with Penghui Energy leading the gains. The Shanghai Composite Index closed at 3950.31, up 0.71%, while the Shenzhen Component Index closed at 13289.18, up 2.02% [1]. Group 1: Market Performance - The street vendor economy sector's stocks showed varied performance, with Penghui Energy (300438) closing at 38.39, up 12.19%, and a trading volume of 675,000 shares, amounting to 2.528 billion yuan [1]. - Other notable performers included Haorun Technology (002963) with a 6.30% increase, Digital Zhengtong (300075) up 5.65%, and Guoen Co., Ltd. (002768) rising by 5.17% [1]. Group 2: Capital Flow - The street vendor economy sector experienced a net outflow of 209 million yuan from institutional investors, while retail investors saw a net inflow of 293 million yuan [2]. - The capital flow data indicates that Penghui Energy had a net inflow of 172 million yuan from institutional investors, while Digital Zhengtong faced a net outflow of 440 million yuan from retail investors [3].

Core Points - Longxin General's stock price increased by 2.05% on October 24, reaching 13.42 CNY per share, with a market capitalization of 27.559 billion CNY [1] - The company has seen a year-to-date stock price increase of 54.25%, but a decline of 2.47% in the last five trading days [1] - Longxin General's main business includes motorcycles and engines (74.58% of revenue), general machinery (22.41%), high-end components (1.26%), and large commercial generator sets (1.03%) [1] Financial Performance - For the first half of 2025, Longxin General reported revenue of 9.752 billion CNY, a year-on-year increase of 27.21%, and a net profit attributable to shareholders of 1.074 billion CNY, up 82.26% [2] - Cumulative cash dividends since the company's A-share listing amount to 3.605 billion CNY, with 1.191 billion CNY distributed in the last three years [3] Shareholder Information - As of June 30, 2025, the number of shareholders decreased by 1.16% to 29,800, while the average circulating shares per person increased by 1.17% to 68,931 shares [2] - The top ten circulating shareholders include Hong Kong Central Clearing Limited, holding 107 million shares, a decrease of 13.536 million shares from the previous period [3]

Core Viewpoint - The article highlights the impressive growth of Longxin General (隆鑫通用) in the motorcycle industry, particularly in terms of profit and market share, following its restructuring and the strategic leadership of Zuo Zongshen, a prominent figure in the motorcycle sector [4][9][11]. Group 1: Financial Performance - Longxin General expects a net profit of 1.52 billion to 1.62 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 69.13% to 80.26% [4]. - In contrast, Chuncheng Power (春风动力) reported a net profit of 1.42 billion yuan for the same period, showing a year-on-year growth of 30.9% [6]. - Longxin General's revenue for the first half of 2025 reached 9.75 billion yuan, a year-on-year increase of 27.2%, with a net profit of 1.07 billion yuan, reflecting an 82.3% growth [17]. Group 2: Market Position and Strategy - Longxin General, along with Chuncheng Power and Qianjiang Motorcycle (钱江摩托), is recognized as one of the "three strong" players in the domestic motorcycle market, with a market share of 14.3% in the 250cc and above segment [13]. - The company has maintained its position as the leading exporter of motorcycles for 19 consecutive years, with a market share of 14.2% in the 250cc and above category, an increase of 5 percentage points from 2022 [12][13]. - Longxin's high-end motorcycle brand "Wuji" has successfully established a foothold in the market, contributing to its export strength and overall performance [14][15]. Group 3: Global Market Opportunities - The domestic market for mid-to-large displacement motorcycles is experiencing significant growth, with a year-on-year increase of 38.7% in sales during the first four months of 2025 [19]. - The global market for motorcycles with a displacement of 250cc and above is estimated to be around 5.5 million units in 2024, providing substantial opportunities for domestic manufacturers to expand internationally [19]. Group 4: Cash Flow and Dividends - Longxin General has consistently maintained positive operating and free cash flows, with a strong cash conversion capability reflected in its financial statements [21][25]. - As of mid-2025, the company reported nearly 8.6 billion yuan in cash, with minimal short-term and long-term debt [28]. - The company has increased its dividend payout significantly, with a total dividend of 820 million yuan in 2024, representing a payout ratio of 73.3%, which is notably higher than the previous average of around 30% [32].

Market Overview - The motorcycle and other sectors increased by 0.41% on October 23, with Shanghai Phoenix leading the gains [1] - The Shanghai Composite Index closed at 3922.41, up 0.22%, while the Shenzhen Component Index closed at 13025.45, also up 0.22% [1] Stock Performance - Shanghai Phoenix (600679) closed at 13.46, up 5.73% with a trading volume of 322,700 shares and a turnover of 440 million yuan [1] - Other notable performers include: - Zhonglu Co., Ltd. (600818) at 10.48, up 2.24% [1] - Qianjiang Motorcycle (000913) at 16.79, up 1.70% [1] - New Day Co., Ltd. (603787) at 12.68, up 1.52% [1] Capital Flow - The motorcycle and other sectors saw a net inflow of 5.91 million yuan from main funds, while retail investors experienced a net outflow of 51.65 million yuan [2] - The main funds' net inflow for Shanghai Phoenix was 51.16 million yuan, indicating strong institutional interest [3] Individual Stock Capital Flow - Key stocks and their capital flow include: - Shanghai Phoenix: Main funds net inflow of 51.16 million yuan, retail net outflow of 50.88 million yuan [3] - Longxin General (603766): Main funds net inflow of 27.58 million yuan, retail net outflow of 38.43 million yuan [3] - Ninebot Company (689009): Main funds net inflow of 8.41 million yuan, retail net outflow of 19.88 million yuan [3]

Core Viewpoint - Longxin General experienced a decline in stock price and trading volume, with significant net financing outflows on October 22, indicating potential investor caution [1] Financing and Margin Trading - On October 22, Longxin General had a financing buy-in amount of 20.84 million yuan and a financing repayment of 31.33 million yuan, resulting in a net financing outflow of 10.49 million yuan [1] - The total financing and margin trading balance for Longxin General as of October 22 was 292 million yuan, with the financing balance accounting for 1.09% of the circulating market value, which is below the 10% percentile level over the past year [1] - The company had a margin repayment of 14,500 shares on October 22, with no shares sold short, and a margin balance of 1.13 million yuan, also below the 20% percentile level over the past year [1] Business Performance - For the first half of 2025, Longxin General reported a revenue of 9.75 billion yuan, representing a year-on-year growth of 27.21%, and a net profit attributable to shareholders of 1.07 billion yuan, reflecting an 82.26% increase year-on-year [2] - The company's main business revenue composition includes motorcycles and engines (74.58%), general machinery products (22.41%), high-end components (1.26%), and large commercial generator sets (1.03%) [1] Shareholder Information - As of June 30, 2025, Longxin General had 29,800 shareholders, a decrease of 1.16% from the previous period, with an average of 68,931 circulating shares per shareholder, an increase of 1.17% [2] - Cumulatively, the company has distributed 3.605 billion yuan in dividends since its A-share listing, with 1.191 billion yuan distributed over the past three years [3] - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited is the third-largest shareholder with 107 million shares, a decrease of 13.54 million shares from the previous period [3]

Investment Rating - The report maintains a "Recommended" rating for the motorcycle industry [1] Core Insights - The motorcycle industry shows a strong export performance, with a year-on-year increase in sales [12] - The overall motorcycle sales from January to September 2025 reached 12.79 million units, representing a 17% year-on-year growth [18] - Domestic sales have decreased slightly by 3% year-on-year, while exports have increased by 22% [18] Industry Data Update - Total motorcycle sales (domestic + export) for January to September 2025: 12.79 million units, up 17% YoY - Domestic sales: 3.37 million units, down 3% YoY - Export sales: 9.42 million units, up 22% YoY - Sales of motorcycles with displacement >250cc: 761,000 units, up 33% YoY - Sales of motorcycles with displacement ≤250cc: 12.03 million units, up 13% YoY [18][19] Company Data Update Chuanfeng Power - Total sales of fuel motorcycles: 196,000 units, up 0.3% YoY - Sales of motorcycles with displacement >250cc: 155,000 units, up 36% YoY - Electric motorcycle sales: 225,000 units, up 620% YoY [26] Qianjiang Motorcycle - Total sales of fuel motorcycles: 304,000 units, down 12% YoY - Sales of motorcycles with displacement >250cc: 101,500 units, down 4% YoY [34] Longxin General - Total sales of fuel motorcycles: 1.06 million units, down 10% YoY - Sales of motorcycles with displacement >250cc: 108,000 units, up 30% YoY [11]