Investment Rating - The report assigns an "Accumulate" rating for the company, focusing on the differentiated market of small-displacement off-road vehicles and expansion through acquisitions [4][7]. Core Views - The company is expected to achieve net profits of 60 million, 79 million, and 100 million RMB for the years 2024-2026, corresponding to P/E ratios of 26.8, 20.6, and 16.2 times [4][7]. - The company differentiates itself from competitors like Chuanfeng Power by focusing on small-displacement non-road off-road vehicles, which presents a unique business opportunity [4][9]. - The company has successfully expanded into the Russian market, which shows high growth potential, and continues to invest in marketing and channel development in Europe and Latin America [4][9]. Summary by Sections Industry Trends and Export Expectations - In 2024, China produced and sold approximately 18.15 million motorcycles, with a slight decline in production but a modest increase in sales [20]. - The market for all-terrain vehicles (ATVs) is expected to grow steadily, with a projected CAGR of 5.7% from 2024 to 2032 [27]. - Exports of motorcycles to Russia increased by 56% year-on-year in the first half of 2024, indicating a recovery in the export market [34][40]. Product Differentiation and Competitive Advantage - The company specializes in off-road motorcycles and ATVs, with off-road motorcycles accounting for 73% of revenue in the first half of 2024 [43]. - The company has established a strong brand presence in the international market, with over 90% of its sales coming from exports [57]. - The company has a robust supply chain and has developed strong relationships with suppliers, ensuring quality and timely delivery of components [72]. Future Development and Subsidiary Investments - The company has acquired a controlling stake in Chongqing Junchi Motorcycle Co., aiming to implement a dual-brand strategy to fill market gaps [93]. - The establishment of Huari Energy Technology Co., Ltd. is expected to facilitate entry into the new energy product sector [95]. - The "Smart Manufacturing Project" is projected to add 400,000 units of production capacity, enhancing overall output [107]. Financial Forecast and Valuation - The company is projected to achieve revenues of 3.72 billion, 5.96 billion, and 7.93 billion RMB from its two-wheeler business from 2024 to 2026, with stable growth in the four-wheeler segment [115]. - The report highlights a favorable comparison with peer companies, with the company's P/E ratios expected to be competitive in the market [117].
华洋赛车：聚焦小排量越野车差异化赛道，对外并购扩品类、填空白