Zhejiang Taotao Vehicles (301345) 华创证券·2024-09-03 01:23Investment Rating - The report maintains a "Recommend" rating for Taotao Vehicles (301345) with a target price of 62 CNY, compared to the current price of 50.33 CNY [1] Core Views - Taotao Vehicles achieved significant revenue growth in H1 2024, with total revenue reaching 1.39 billion CNY, a 77.2% YoY increase [1] - The company's net profit attributable to shareholders grew by 35.4% YoY to 180 million CNY in H1 2024 [1] - Electric golf carts emerged as the key growth driver, contributing 370 million CNY in revenue with a staggering 1200.8% YoY growth [2] - The company expanded its dealer network, adding over 60 new dealers for electric golf carts, bringing the total to 120+ [2] - All-terrain vehicles (ATVs) showed strong performance, especially in non-US markets, with revenue reaching 370 million CNY, a 47.3% YoY increase [2] - Electric bicycles also demonstrated robust growth, with revenue increasing by 110% YoY to 130 million CNY [2] Financial Performance - Q2 2024 revenue reached 870 million CNY, a 99.8% YoY increase, with net profit of 130 million CNY, up 31.7% YoY [1] - Gross margin in Q2 2024 was 35%, down 6.2 percentage points YoY, primarily due to product mix changes [2] - The company's net profit margin in Q2 2024 was 15.1%, a decrease of 7.8 percentage points YoY [2] - Revenue is expected to grow to 3.6 billion CNY in 2024, 4.76 billion CNY in 2025, and 5.95 billion CNY in 2026 [3] - Net profit is forecasted to reach 401 million CNY in 2024, 537 million CNY in 2025, and 694 million CNY in 2026 [3] Product Development and Market Expansion - The company launched new electric golf cart models under its DENAGO brand, including a four-seater version [2] - ATV product line expanded with the development of 300cc and 550cc models, with the 300cc model already selling over 1,000 units [2] - The company is implementing a "North America Manufacturing+" strategy, with Vietnam factory already in trial production and three manufacturing bases in the US under development [2] Valuation and Forecast - The company's PE ratio is expected to be 14x in 2024, 10x in 2025, and 8x in 2026 [3] - EPS is projected to grow from 3.65 CNY in 2024 to 6.32 CNY in 2026 [3] - ROE is forecasted to improve from 12.6% in 2024 to 18.0% in 2026 [5]