CFMOTO(SH:603129) HTSC·2024-10-18 02:03Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 202.90 [5][8]. Core Insights - The company reported a net profit of RMB 3.7 billion in Q3, exceeding expectations with a year-on-year growth of 49% [1][3]. - The total revenue for the first three quarters reached RMB 11.45 billion, reflecting a year-on-year increase of 22% [1]. - The company is optimistic about the growth potential in both domestic and export markets for two-wheeled and four-wheeled vehicles [1][2]. Summary by Sections Financial Performance - In Q3, the company achieved revenue of RMB 39.2 billion, a year-on-year increase of 36.1%, but a quarter-on-quarter decline of 12.2% due to seasonal fluctuations and changes in European emission standards [2]. - The gross margin improved by 0.8 percentage points to 31.6% in Q3, attributed to product mix adjustments [3]. - The company’s Q3 net profit reached RMB 3.7 billion, a year-on-year increase of 48.9% [3]. Sales and Market Outlook - The company sold 55,000 motorcycles in July and August, marking a 93% year-on-year increase, with 25,000 units being high-displacement motorcycles [2]. - The company anticipates improved performance in Q4 for two-wheeled exports as it completes Euro 5+ certification [2]. Employee Incentives - The company announced a new stock option incentive plan for 2024, aiming to grant 3.55 million options to 1,310 core management and technical personnel, with revenue targets set for 2024 and beyond [4]. Valuation and Forecast - The report projects net profits for 2024, 2025, and 2026 to be RMB 1.36 billion, RMB 1.70 billion, and RMB 2.09 billion respectively, with a PE ratio of 18.1 for 2025 [5][6].