CFMOTO(SH:603129) Minsheng Securities·2024-10-17 14:09Investment Rating - The report maintains a "Recommended" rating for the company, with a target price based on the closing price of 149.62 CNY per share on October 17, 2024, corresponding to a PE ratio of 16/12/10 for the years 2024-2026 [3]. Core Insights - The company reported a strong performance in Q3 2024, with revenue of 3.92 billion CNY, a year-on-year increase of 36.1%, and a net profit of 370 million CNY, up 48.9% year-on-year, exceeding market expectations [1]. - The growth in revenue is attributed to the upward trend in both domestic and international sales of mid-to-large displacement motorcycles and a recovery in demand for all-terrain vehicles [1]. - The company is experiencing a significant increase in market share in the mid-to-large displacement motorcycle segment, achieving a sales volume of 100,000 units from January to August 2024, a year-on-year increase of 86.0% [1]. - The introduction of new high-performance all-terrain vehicle models in the North American market is expected to further enhance market share and growth potential [1]. - A stock option incentive plan has been introduced to attract and retain key talent, with performance targets set for revenue growth over the next few years [1]. Financial Summary - The company forecasts revenues of 15.28 billion CNY, 19.59 billion CNY, and 23.97 billion CNY for 2024, 2025, and 2026, respectively, with corresponding net profits of 1.4 billion CNY, 1.84 billion CNY, and 2.3 billion CNY [2][5]. - The projected EPS for the same years is 9.26 CNY, 12.14 CNY, and 15.16 CNY, indicating a strong growth trajectory [2][5]. - The financial metrics show a consistent improvement in profitability, with net profit margins expected to rise from 8.32% in 2023 to 9.58% in 2026 [5].