CFMOTO(SH:603129) Minsheng Securities·2024-08-06 23:30Investment Rating - The report maintains a "Recommended" rating for the company [3] Core Views - The company has introduced a stock option incentive plan for 2024, proposing to grant 3.55 million stock options, accounting for 2.3% of the total share capital, aimed at attracting and retaining talent [1] - The employee stock ownership plan for 2025-2026 is designed to enhance the motivation of core management personnel, with performance targets set for revenue [1] - The company aims to become a global leader in the Powersport sector, with significant growth in motorcycle exports and a focus on high-value products in the all-terrain vehicle market [1] - Long-term growth is anticipated in both motorcycle exports and high-end four-wheeler layouts, with revenue projections for 2024-2026 set at 15.2 billion, 19.6 billion, and 23.7 billion yuan respectively [1] Financial Forecasts - Revenue is projected to grow from 12.11 billion yuan in 2023 to 15.20 billion yuan in 2024, with a growth rate of 25.5% [2][4] - Net profit attributable to shareholders is expected to increase from 1.01 billion yuan in 2023 to 1.32 billion yuan in 2024, reflecting a growth rate of 31.3% [2][4] - Earnings per share (EPS) is forecasted to rise from 6.65 yuan in 2023 to 8.74 yuan in 2024, with a price-to-earnings (PE) ratio of 15 for 2024 [2][5] Financial Metrics - The company’s gross margin is projected to be around 32.95% in 2024, with a net profit margin of 8.70% [4] - The return on assets (ROA) is expected to be 9.87% in 2024, while the return on equity (ROE) is projected at 21.94% [4] - The company’s total assets are forecasted to grow from 10.31 billion yuan in 2023 to 13.41 billion yuan in 2024 [5]