LONCIN(603766) 海通证券·2024-07-25 12:31Investment Rating - The report assigns an "Outperform" rating to the company, indicating a positive outlook for its stock performance [8] Core Views - The company's motorcycle business, especially the high-end Wuji brand, is experiencing rapid growth, with Wuji's revenue increasing by 57.05% in 2023 and 135.21% in Q1 2024 [16] - The company's profitability is expected to improve, with net profit forecasted to grow by 87.6%, 11.6%, and 13.4% in 2024, 2025, and 2026 respectively [19][21] - The company's revenue is projected to grow steadily, with year-over-year increases of 7.9%, 9.9%, and 10.9% from 2024 to 2026 [23] Financial Performance - The company's gross margin is expected to improve slightly, reaching 18.55%, 18.74%, and 18.87% in 2024, 2025, and 2026 respectively [6] - The company's net profit margin is forecasted to increase from 4.5% in 2023 to 7.8%, 7.9%, and 8.1% in 2024, 2025, and 2026 respectively [31] - The company's EPS is expected to grow from 0.28 yuan in 2023 to 0.53, 0.59, and 0.67 yuan in 2024, 2025, and 2026 respectively [18][31] Business Segments - The motorcycle and engine business is expected to maintain strong growth, with revenue increasing by 16.38%, 15.41%, and 14.43% from 2024 to 2026 [20] - The general machinery products business is expected to see declining revenue, with year-over-year decreases of 15%, 10%, and 5% from 2024 to 2026 [2] Valuation - The company's 2024 PE ratio is estimated at 10.8x, with a target valuation range of 7.95-9.01 yuan based on 15-17x PE [21] - The company's current market capitalization is 11.828 billion yuan, with a share price of 5.76 yuan as of July 24, 2024 [13]