CFMOTO(SH:603129) Guoxin Securities·2024-10-19 10:03Investment Rating - The report maintains an "Outperform" rating for Chuanfeng Power (603129.SH) [3][18] Core Views - Chuanfeng Power's revenue for Q3 2024 reached 3.92 billion yuan, a year-on-year increase of 36.1%, while net profit attributable to shareholders was 370 million yuan, up 48.9% year-on-year [1][5] - The company is experiencing rapid growth in its motorcycle business and steady performance in the all-terrain vehicle (ATV) segment, with a focus on high-end products and international expansion [1][10] - The introduction of new high-end products is expected to enhance competitiveness in the ATV market and drive growth in motorcycle exports [1][10][16] Financial Performance - For H1 2024, Chuanfeng Power sold 81,400 ATVs, generating revenue of 3.532 billion yuan, a slight decline of 1.55% year-on-year [1][5] - Domestic motorcycle sales reached 68,000 units with revenue of 1.446 billion yuan, a year-on-year increase of 38.25% [1][5] - The company achieved overseas motorcycle sales of 85,800 units, with revenue of 1.802 billion yuan, marking a 45.07% increase year-on-year [1][5] Profitability and Cost Management - The company's gross margin for Q3 2024 was 31.6%, with a net profit margin of 9.7% [1][8] - Cost management strategies, including inventory reduction and expense control, have contributed to improved profitability [1][8] Product Development and Market Strategy - Chuanfeng Power is entering a new product cycle with several high-performance ATV models launched in 2024, enhancing its product matrix [10][11] - The company plans to continue releasing popular motorcycle models, leveraging its strong sales network and brand recognition [15][16] - The expansion into overseas markets, particularly in North America and Europe, is expected to provide long-term growth opportunities [16][18] Earnings Forecast and Valuation - The report has adjusted the profit forecast for 2024, 2025, and 2026, expecting net profits of 1.371 billion, 1.699 billion, and 2.102 billion yuan respectively [18] - The projected earnings per share for the same years are 9.06, 11.22, and 13.88 yuan, with corresponding price-to-earnings ratios of 17, 13, and 11 times [18]