CFMOTO(SH:603129) Guotou Securities·2024-10-18 03:23Investment Rating - The investment rating for the company is "Buy-A" with a target price of 190.6 CNY per share, maintaining the rating [4][5]. Core Views - The company reported a revenue of 11.45 billion CNY for Q3 2024, representing a year-on-year increase of 21.98%, and a net profit of 1.08 billion CNY, up 34.87% year-on-year [2][4]. - The company continues to experience high growth driven by four core growth logic factors: improvement in product structure for all-terrain vehicles, a new product cycle for mid-to-large displacement motorcycles, accelerated overseas expansion of mid-to-large displacement motorcycles, and gradual development of the electric two-wheeler business [5][4]. Summary by Sections Financial Performance - In Q3 2024, the company achieved a revenue of 3.92 billion CNY, a year-on-year increase of 36.11%, while the gross margin was 31.57%, a decrease of 2.10 percentage points year-on-year [4][3]. - The net profit attributable to shareholders for Q3 2024 was 373 million CNY, reflecting a year-on-year increase of 48.95% [4][3]. Growth Drivers - The company has become the market leader in the European ATV sector and is expanding into higher-value UTV and SSV products, with four new models launched in August 2024 [5][4]. - The domestic market for mid-to-large displacement motorcycles is entering a new product cycle, with several potential blockbuster models expected to enhance market share [5][4]. - The company has seen significant growth in overseas sales, with 85,800 units exported in H1 2024, a year-on-year increase of 45.07% [5][4]. - The electric two-wheeler segment is also gaining traction, with new high-end models launched and a significant increase in domestic and international channel expansion [5][4]. Valuation Metrics - The projected net profits for 2024, 2025, and 2026 are 1.43 billion CNY, 1.80 billion CNY, and 2.41 billion CNY, respectively, with corresponding PE ratios of 15.7, 12.5, and 9.3 [7][8]. - The company’s revenue is expected to grow from 15.39 billion CNY in 2024 to 23.17 billion CNY in 2026, indicating a strong growth trajectory [7][8].