CFMOTO(SH:603129) Huafu Securities·2024-10-21 00:30Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative price increase of over 20% compared to the market benchmark index within the next six months [12]. Core Views - The company reported Q3 performance exceeding expectations, with revenue of 11.45 billion yuan for the first three quarters, a year-on-year increase of 21.98%, and a net profit of 1.08 billion yuan, up 34.87% year-on-year [1]. - The introduction of new products, particularly the U/Z series all-terrain vehicles, is anticipated to drive growth and improve profitability in the four-wheeled vehicle segment [2]. - The domestic market for fuel motorcycles remains strong, with sales increasing by 55% year-on-year, while export growth has slowed due to various external factors [3]. - The electric motorcycle segment is also expected to see rapid growth due to new product launches and channel expansion [4]. - A decrease in expense ratios contributed to an improvement in net profit margins, with a Q3 net profit margin of 9.7%, up 0.6 percentage points year-on-year [5]. Financial Summary - The company has adjusted its profit forecasts upwards, projecting net profits of 1.365 billion yuan, 1.734 billion yuan, and 2.084 billion yuan for 2024, 2025, and 2026 respectively, reflecting year-on-year growth rates of 36%, 27%, and 20% [6]. - The projected P/E ratios for 2024, 2025, and 2026 are 17x, 14x, and 11x respectively, indicating a favorable valuation outlook [6]. - Key financial metrics include a revenue growth rate of 27% for 2024 and a net profit growth rate of 36% for the same year [9].