CFMOTO(SH:603129) KAIYUAN SECURITIES·2024-10-17 03:00Investment Rating - The report assigns a "Buy" rating for the company, Chuanfeng Power (603129.SH), as it is recognized as a leader in the all-terrain vehicle (ATV) and mid-to-large displacement motorcycle market in China [1][2]. Core Insights - Chuanfeng Power has established a strong global sales and production layout, primarily focusing on North America, with domestic and European markets as supplementary regions. The company has maintained a revenue growth rate with a CAGR of 37.17% from 2017 to 2023 [2][7]. - The company is expected to benefit from a recovery in overseas sales as the ATV market enters a replenishment phase, alongside the introduction of new high-end products that capitalize on industry trends [2][3]. - The motorcycle segment is also poised for growth, with a diverse product matrix and strong performance in both domestic and international markets [3][4]. Summary by Sections 1. Company Overview - Chuanfeng Power is a leading domestic manufacturer of ATVs and mid-to-large displacement motorcycles, with over 90% of its revenue derived from these products. The company has a global sales structure led by North America, with Europe and domestic markets as secondary focuses [2][7]. - The company has a concentrated shareholding structure, with the controlling shareholder being Chuanfeng Holdings Group, which holds 29.91% of the shares [10][12]. 2. ATV Market - The global ATV market is expected to see steady growth, with a noticeable trend towards higher-end products. The company has achieved a significant market share, with 70.79% of its exports in 2023 coming from the U.S. market, where it continues to expand its dealer network [3][21]. - The company has successfully created a competitive advantage through cost-effective branding and continuous product innovation, with a focus on high-value U/Z products [3][21]. 3. Motorcycle Market - The motorcycle industry is experiencing stable growth, with a notable increase in the share of mid-to-large displacement motorcycles. The company has established a comprehensive brand matrix and distribution channels, with products recognized for their performance [3][4]. - The company is focusing on expanding its overseas market presence, particularly in Europe and North America, while also launching popular domestic models that are expected to capture market share [3][4]. 4. Financial Analysis - The company has shown robust revenue growth, with a projected revenue of 14.74 billion yuan for 2024, reflecting a year-on-year increase of 21.7%. The net profit attributable to shareholders is expected to reach 1.3 billion yuan in 2024, with a corresponding EPS of 8.56 yuan [3][4][14]. - The company's gross margin has improved significantly, with a gross margin of 33.5% in 2023, driven by an optimized product mix and reduced impacts from public health events [15][18].