CFMOTO(603129) 华创证券·2024-11-03 05:23Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 204 CNY, indicating an expected performance exceeding the benchmark index by 10%-20% over the next six months [3][5]. Core Insights - The company reported a significant revenue growth of 36.1% year-on-year in Q3 2024, reaching 3.92 billion CNY, and a net profit of 370 million CNY, which is a 48.95% increase year-on-year, surpassing market expectations [1][2]. - The growth in revenue is attributed to strong performance in the two-wheeler segment during the peak season, with domestic sales showing a remarkable increase of 156% year-on-year [2]. - The gross margin improved to 31.6%, up by 0.8 percentage points from the previous quarter, driven by a higher proportion of four-wheeler sales [2]. - The company is expected to continue benefiting from new product launches in the four-wheeler segment, which are anticipated to enhance market share in the mid-to-high-end market [2][3]. Financial Summary - For the fiscal years 2024 to 2026, the company’s projected net profits are adjusted to 1.30 billion CNY, 1.68 billion CNY, and 2.27 billion CNY respectively, with corresponding price-to-earnings ratios of 19, 15, and 11 times [3][4]. - The total revenue is forecasted to grow from 12.11 billion CNY in 2023 to 23.69 billion CNY by 2026, reflecting a compound annual growth rate of approximately 25.4% [4][7]. - The company’s return on equity (ROE) is expected to increase from 20.0% in 2023 to 25.1% by 2026, indicating improving profitability [4][7].