Investment Rating - The report maintains a "Recommended" rating for the motorcycle industry [1] Core Insights - The motorcycle export market remains robust, with a year-on-year sales increase of 20% for total exports in 2025, reaching 12.6 million units [5][15] - The overall motorcycle sales for 2025 reached 16.99 million units, reflecting a year-on-year growth of 16% [15] - The sales of motorcycles with engine displacement greater than 250cc increased by 26% year-on-year, totaling 950,000 units [15][16] Industry Data Update - Total motorcycle sales (domestic + export) for 2025: 16.99 million units, with domestic sales of 4.39 million units (down 4% YoY) and exports of 12.6 million units (up 20% YoY) [5][15] - Breakdown of sales by engine displacement: - 150cc < displacement ≤ 250cc: 2.04 million units (up 8% YoY) - Displacement > 250cc: 950,000 units (up 26% YoY) [16][20] Company Tracking - **Chunfeng Power**: - Total motorcycle sales: 260,000 units (up 4% YoY) - Sales of electric motorcycles: 300,000 units (up 420% YoY) [6][24] - **Qianjiang Motorcycle**: - Total motorcycle sales: 383,000 units (down 12% YoY) - Sales of motorcycles with displacement > 250cc: 114,000 units (down 10% YoY) [7][30] - **Longxin General**: - Total motorcycle sales: 1.34 million units (down 15% YoY) - Sales of motorcycles with displacement > 250cc: 140,000 units (up 32% YoY) [8][18]

Core Viewpoint - Longxin General is expected to achieve significant growth in 2025, with a new phase for the Wujie brand starting in 2026, driven by steady growth in its motorcycle and general machinery sectors, as well as continuous optimization of the Wujie product structure [1] Group 1 - The company is experiencing robust growth in overall performance due to the scale of its main businesses in motorcycles and general machinery [1] - The implementation of the employee stock ownership plan has enhanced the stability of the core team [1] - The global expansion of the medium and large displacement motorcycle segment is primarily driven by the Wujie brand [1] Group 2 - The company is leveraging multi-business collaboration to drive growth, with dual expansion in both product and channel for the Wujie brand [1] - The resonance of volume and profit is accelerating growth [1] - The rating is maintained at "Recommended" [1]

Market Overview - The motorcycle and other sectors increased by 1.62% on January 19, with Longxin General leading the gains [1] - The Shanghai Composite Index closed at 4114.0, up 0.29%, while the Shenzhen Component Index closed at 14294.05, up 0.09% [1] Stock Performance - Key stocks in the motorcycle and other sectors showed various performance metrics, with Jiangui General closing at 15.75, up 4.30% on a trading volume of 568,200 shares and a transaction value of 893 million yuan [1] - Other notable performers included Linhai Co. at 10.79 (up 2.47%), Yama Technology at 30.58 (up 2.14%), and Shanghai Phoenix at 13.29 (up 2.07%) [1] Capital Flow - The motorcycle and other sectors experienced a net outflow of 52.68 million yuan from institutional investors, while retail investors saw a net inflow of 63.83 million yuan [2] - The capital flow data indicates that retail investors were more active in the market compared to institutional and speculative investors [2] Individual Stock Capital Flow - Qianli Technology had a net inflow of 61.57 million yuan from institutional investors, while it faced a net outflow of 45.51 million yuan from retail investors [3] - Yong'an Xing saw a net inflow of 6.41 million yuan from institutional investors, but also experienced a net outflow from retail investors [3] - Other stocks like Shanghai Phoenix and Zhenhe Industrial showed mixed capital flows, with varying levels of net inflows and outflows across different investor types [3]

Core Viewpoint - The company expects significant growth in its 2025 annual performance, projecting a net profit attributable to shareholders of 1.65 to 1.8 billion yuan, representing a year-on-year increase of 47.2% to 60.5% [2]. Group 1: Performance Forecast - The company anticipates a net profit of 1.65 to 1.8 billion yuan for 2025, with a growth rate of 47.2% to 60.5% year-on-year. The expected non-recurring net profit is projected to be between 1.6 to 1.75 billion yuan, reflecting a year-on-year increase of 46.0% to 59.7% [2]. - For Q4 2025, the company estimates a net profit of approximately 150 million yuan, which is a decline of 33.6% year-on-year and 70.6% quarter-on-quarter. The non-recurring net profit for the same quarter is also expected to be around 150 million yuan, down 42.3% year-on-year and 70.4% quarter-on-quarter [3]. Group 2: Employee Stock Ownership Plan - In December 2025, the company announced an employee stock ownership plan with a scale not exceeding 400 million yuan, which corresponds to approximately 2.594 million shares, accounting for 1.3% of the total share capital. The performance assessment conditions for 2026 to 2028 are set to achieve revenue growth targets for self-owned brands [4]. Group 3: Motorcycle Sales Growth - The company projects sales of large-displacement motorcycles to reach 108,000 units in 2024 and 141,000 units in 2025, with year-on-year growth rates of 43.1% and 31.2%, respectively. Export sales are expected to be 51,000 units in 2024 and 90,000 units in 2025, with growth rates of 24.8% and 76.9% [5]. - The company's brand, Wujin, has made significant inroads in the European market, with sales in Spain reaching 15,000 units from January to November 2025, marking an increase of 80.7% year-on-year. In Italy, sales for the same period grew by 96.5% year-on-year [5]. Group 4: Financial Projections - The company forecasts revenues of 20.158 billion yuan for 2025, with a growth rate of 19.8%. The net profit attributable to shareholders is expected to be 1.767 billion yuan, reflecting a growth rate of 57.6% [7]. - The projected earnings per share (EPS) for 2025 is 0.86 yuan, with a price-to-earnings (PE) ratio of 18 times based on the closing price on January 16, 2026 [6][7].

Investment Rating - The report maintains a "Recommended" rating for the company [3]. Core Insights - The company expects a significant increase in net profit for 2025, projecting a range of 1.65 to 1.80 billion yuan, representing a year-on-year growth of 47.2% to 60.5% [1]. - The company's performance in Q4 2025 is expected to be impacted by asset disposal losses and other external factors, but the overall annual performance is driven by strong growth in the motorcycle and general machinery sectors, as well as continuous optimization of the product structure [1]. - The employee stock ownership plan is expected to enhance the stability of the core team and stimulate creativity and motivation [2]. - The company is expanding its large-displacement motorcycle sales globally, with significant contributions from the "Wuji" brand, particularly in the European market [3]. - Revenue projections for 2025-2027 are estimated at 20.16 billion, 23.41 billion, and 27.05 billion yuan, with net profits of 1.77 billion, 2.32 billion, and 2.71 billion yuan respectively [3]. Summary by Relevant Sections Financial Performance - The company forecasts a net profit of 1.67 billion yuan for 2025, with a growth rate of 57.6% compared to 2024 [5]. - The projected earnings per share (EPS) for 2025 is 0.86 yuan, with a price-to-earnings (PE) ratio of 18 times based on the closing price of 15.10 yuan per share on January 16, 2026 [5]. Sales and Market Expansion - The company anticipates motorcycle sales of 10.8 million units in 2024 and 14.1 million units in 2025, with export sales expected to reach 5.1 million and 9.0 million units respectively [3]. - The "Wuji" brand has shown strong sales growth in Spain and Italy, with year-on-year increases of 80.7% and 96.5% respectively in 2025 [3]. Employee Engagement - The employee stock ownership plan, with a scale of up to 400 million yuan, aims to bind the interests of core personnel and enhance team stability [2].

Core Viewpoint - Longxin General Power Co., Ltd. expects a significant increase in net profit for the year 2025, with a projected growth rate of 47.15% to 60.53% compared to the previous year [1] Financial Performance - The company anticipates a net profit attributable to shareholders of the parent company between 1.65 billion yuan and 1.80 billion yuan for the period from January 1 to December 31, 2025, which represents an increase of 529 million yuan to 679 million yuan from the previous year's net profit of 1.121 billion yuan [1] - After excluding non-recurring gains and losses, the expected net profit is projected to be between 1.60 billion yuan and 1.75 billion yuan, reflecting a growth of 46.03% to 59.72% compared to the previous year's figure of 110 million yuan [1] - The basic earnings per share for the previous year was 0.55 yuan [1] Business Drivers - The anticipated growth in 2025 is primarily attributed to the steady development of core business operations and continuous optimization of product structure [1]

Core Viewpoint - The company, Longxin General, announced a significant increase in its projected net profit for the year 2025, indicating strong growth despite facing short-term challenges [2][3] Financial Performance - The net profit attributable to the parent company is expected to be between 165 million to 180 million yuan, representing an increase of 52.87 million to 67.87 million yuan compared to the previous year's profit of 112.13 million yuan, with a year-on-year growth rate of 47.15% to 60.53% [2] - After excluding non-recurring gains and losses, the net profit is projected to be between 160 million to 175 million yuan, an increase of 50.43 million to 65.43 million yuan from last year's 109.57 million yuan, reflecting a growth of 46.03% to 59.72% [2] - The previous year's earnings per share were 0.55 yuan, with a total profit of 127.56 million yuan [2] Reasons for Performance Increase - The company cited several short-term factors impacting the fourth quarter performance, including losses from the disposal of equity in Zunyi Jinye Machinery Casting Co., Ltd., C.M.D Costruzioni Motori Diesel S.p.A., and Zhuhai Longhua Helicopter Technology Co., Ltd., as well as impairment provisions for loans and receivables [3] - One-time expenses related to upgrading exhibition halls and office environments, along with foreign exchange losses, were also noted as contributing factors [3] - The core drivers of the overall performance growth were attributed to steady growth in the motorcycle and general machinery sectors, along with ongoing optimization of the Wujie product line, which effectively enhanced the company's overall profitability [3]

Group 1 - Canada will grant China an annual quota of 49,000 electric vehicles, which will enjoy a 6.1% Most Favored Nation tariff rate, with the quota increasing at a certain rate each year [1] - The Ministry of Commerce of China expects both countries' industries to seize opportunities for mutual benefit and win-win cooperation [1] - The State Council of China is focusing on boosting consumption and supporting new service consumption growth points, aiming to enhance service quality and consumer willingness [1] Group 2 - The China Securities Regulatory Commission (CSRC) is strengthening market monitoring and regulation to prevent excessive speculation and market manipulation [1] - The CSRC is drafting a trial management method for derivative trading, emphasizing prudent regulation and maintaining reasonable leverage levels in the derivatives market [1] - The market supervision authority approved the acquisition of Dole Group by American Axle Manufacturing with additional restrictive conditions to ensure fair competition in the automotive parts sector [2] Group 3 - TCL Zhonghuan signed a cooperation framework agreement to invest in a new energy project [4] - Huatai Hotel's controlling shareholder is planning a merger and reorganization, which may lead to a change in actual control [4] - Cheng Tian Wei Ye plans to raise no more than 800 million yuan through a private placement for liquid cooling system projects [4]

Group 1 - The China Securities Regulatory Commission (CSRC) emphasized maintaining market stability and enhancing monitoring and regulation to prevent excessive speculation and market manipulation [3] - Canada and China reached a consensus on deepening economic and trade cooperation, signing the "China-Canada Economic and Trade Cooperation Roadmap," which includes an annual quota of 49,000 electric vehicles from China with a 6.1% most-favored-nation tariff [3] Group 2 - The State Council of China is focusing on boosting consumption and has outlined measures to clear overdue payments to businesses and ensure wage payments to migrant workers [4] - The Ministry of Commerce announced stronger support for green and smart product consumption through a recycling program for consumer goods [4] Group 3 - The State-owned Assets Supervision and Administration Commission (SASAC) is working on optimizing the layout and structure of state-owned enterprises, focusing on enhancing core business strengths [5] - The Market Supervision Administration has introduced new guidelines for recognizing illegal gains in market regulation, effective from March 20 [5] Group 4 - The A-share market experienced fluctuations, with the Shanghai Composite Index closing at 4,101.91 points, down 0.26%, while the Shenzhen Component Index and the ChiNext Index also saw slight declines [6] - The Hong Kong stock market showed mixed results, with the Hang Seng Index closing down 0.29% but showing a weekly gain of 2.34% [7] Group 5 - The Ministry of Housing and Urban-Rural Development highlighted significant investment opportunities in urban renewal projects during the 14th Five-Year Plan period [11] - The Ministry of Finance extended tax incentives for public rental housing, exempting certain taxes to promote construction [11] Group 6 - The China Automotive Power Battery Industry Innovation Alliance reported a 60.1% year-on-year increase in the cumulative production of power and energy storage batteries in 2025 [12] - The China Securities Association announced new rules allowing certain individual investors to redeem public pension fund shares early under specific conditions [12] Group 7 - The U.S. Federal Reserve officials indicated that current monetary policy remains moderately restrictive, with potential adjustments depending on labor market conditions [15][16] - The U.S. Senate approved funding for federal research institutions, rejecting previous budget cuts proposed by the Trump administration [16] Group 8 - The Chinese bond market showed signs of warming, with yields generally declining and the central bank conducting a net injection of liquidity [20] - Barclays analysts forecast a total issuance of U.S. corporate bonds to reach $2.46 trillion in 2026, marking an 11.8% increase year-on-year [20]

Key Points - China Metallurgical Group Corporation (China MCC) expects a decline of over 50% in net profit attributable to shareholders in 2025 due to losses in the real estate sector and increased asset impairment provisions [1] - JAC Motors anticipates a net loss of approximately 1.68 billion yuan in 2025, although this represents a reduction in losses compared to the previous year [2] - Northern Rare Earth forecasts a net profit increase of 116.67% to 134.60% in 2025, driven by improved sales and production efficiency in rare earth products [3] - Shenghong Technology projects a net profit increase of 260.35% to 295% in 2025, attributed to the growing demand for AI infrastructure and high-end products [4] - Lanke Technology expects a net profit increase of 52.29% to 66.46% in 2025, benefiting from strong demand in the AI industry [7] - Aiwai Electronics anticipates a net profit increase of 17.70% to 29.47% in 2025, focusing on high-value chip solutions [25] - Longxin General expects a net profit increase of 47.15% to 60.53% in 2025, driven by steady growth in its core motorcycle and general machinery businesses [28] - China One Heavy Industry predicts a net loss of 310 million to 460 million yuan in 2025, although this represents a significant reduction from the previous year's loss [35] - Kunda Technology expects a net loss of 1.2 billion to 1.5 billion yuan in 2025, impacted by industry supply-demand imbalances [34] - Daqing Energy anticipates a net loss of 1 billion to 1.3 billion yuan in 2025, although this reflects a narrowing of losses compared to the previous year [42]