CFMOTO(603129) 天风证券·2024-08-27 07:51Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 128.19 yuan [2] Core Views - The company's two-wheeled vehicle business is experiencing strong growth both domestically and internationally, with significant contributions from overseas markets [1] - The company has achieved a milestone by winning the MotoGP championship in Qatar, marking the first time a Chinese manufacturer has won in the 75-year history of the series [2] - The company's all-terrain vehicle exports account for 71.75% of the domestic market share, solidifying its leading position in the industry [2] - The domestic market for large-displacement motorcycles is growing, driven by increasing consumer interest and technological advancements, with the company leading in the >250cc segment [2] - The company has implemented an employee stock ownership plan, with income targets set at 140 billion yuan for 2024, 305 billion yuan cumulative for 2024-2025, and 505 billion yuan cumulative for 2024-2026, demonstrating confidence in future growth [2] Financial Performance - In H1 2024, the company achieved revenue of 7.529 billion yuan, a YoY increase of 15.73%, and net profit attributable to the parent company of 709 million yuan, a YoY increase of 28.49% [1] - The gross margin for H1 2024 was 31.51%, a slight decrease of 1.07 percentage points YoY, while the net profit margin increased by 0.94 percentage points to 9.41% [1] - In Q2 2024, revenue reached 4.468 billion yuan, a YoY increase of 23.2%, and net profit attributable to the parent company was 431 million yuan, a YoY increase of 26.35% [1] - The company's two-wheeled vehicle sales in H1 2024 were 153,900 units, a YoY increase of 56%, with domestic sales of 68,000 units (+42% YoY) and overseas sales of 86,000 units (+69% YoY) [1] Product Performance - All-terrain vehicle sales in H1 2024 were 81,400 units, generating revenue of 3.532 billion yuan, a slight decrease of 1.55% YoY [1] - Two-wheeled vehicle revenue in H1 2024 was 3.248 billion yuan, a YoY increase of 41.95%, with domestic revenue of 1.446 billion yuan (+38% YoY) and overseas revenue of 1.802 billion yuan (+45% YoY) [1] Future Projections - The company's revenue is projected to grow from 14.569 billion yuan in 2024E to 21.874 billion yuan in 2026E, with a CAGR of 20.31% to 21.67% [3] - Net profit attributable to the parent company is expected to increase from 1.318 billion yuan in 2024E to 2.078 billion yuan in 2026E, with a CAGR of 30.82% to 25.08% [3] - The company's PE ratio is forecasted to decrease from 14.73x in 2024E to 9.34x in 2026E, indicating potential undervaluation [3] Industry Trends - The domestic motorcycle industry is undergoing a transformation towards high-end, intelligent, and green manufacturing, with large-displacement motorcycles driving growth [2] - The company is well-positioned in the domestic market for large-displacement motorcycles, with a rapidly improving product portfolio and leading market share in the >250cc segment [2]