Bafang Electric( Suzhou) (603489) 光大证券·2024-08-23 03:11Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next 6-12 months [3]. Core Views - The company is expected to see a significant improvement in performance as channel inventory gradually normalizes, with a forecasted increase in net profit from 128 million in 2023 to 146 million in 2024, and further to 211 million in 2025 [2][7]. - The report highlights that despite a challenging 2023 due to high inventory levels and reduced demand in Europe, the long-term demand for electric bicycles remains strong, supported by government subsidies and infrastructure investments [1][2]. - The company is actively enhancing its brand presence and after-sales service, participating in major international exhibitions and launching a direct-to-dealer service system to improve customer service [1]. Summary by Sections Financial Performance - Revenue is projected to recover from 1.648 billion in 2023 to 1.764 billion in 2024, with a growth rate of 7.08% [2][7]. - Net profit is expected to rise from 128 million in 2023 to 146 million in 2024, reflecting a growth rate of 14.09% [2][7]. - The company's earnings per share (EPS) is forecasted to increase from 0.76 in 2023 to 0.62 in 2024 [2][7]. Market Outlook - The European electric bicycle market is anticipated to grow due to increased support for low-carbon transportation, while the U.S. market presents significant growth potential due to its lower current penetration rate [1][2]. - The domestic market is also expected to benefit from government initiatives aimed at promoting electric bicycles as part of a broader strategy for sustainable transportation [1]. Brand and Service Development - The company has participated in key international trade shows to showcase its diverse range of electric bicycle models tailored to different market needs [1]. - The introduction of the direct-to-dealer service system aims to enhance customer service efficiency and align the company's service standards with leading global brands [1].