LONCIN(SH:603766) Tianfeng Securities·2025-05-06 06:23Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative return of over 20% within the next six months [7][18]. Core Views - The company's net profit for Q1 2024 exceeded expectations, driven by the accelerated growth of its high-end brand "Wuji" [5][6]. - The company is projected to achieve a revenue of 16.82 billion yuan in 2024, representing a year-on-year growth of 28.74%, and a net profit of 1.12 billion yuan, reflecting a significant increase of 92.19% [6][5]. - The report highlights the strong performance of the "Wuji" brand, which saw a revenue increase of 111.43% in 2024, with domestic sales growing by 114% and international sales by 108% [3][5]. Financial Performance Summary - For the full year 2024, the company is expected to achieve a gross margin of 17.59%, a net profit margin of 6.67%, and a non-GAAP net profit margin of 6.51% [5][6]. - The report indicates a significant improvement in the company's cost management, with a decrease in the expense ratio to 7.28% [5][6]. - The company’s revenue for Q4 2024 was 4.60 billion yuan, a year-on-year increase of 24.35%, but the net profit decreased by 207.36% compared to the previous year [2][5]. Growth Drivers - The "Wuji" brand is positioned as a leading high-end motorcycle brand in China, with plans to deepen its market presence in Europe and expand into Latin America and Southeast Asia [3][5]. - The all-terrain vehicle (ATV) segment is also showing promise, with sales revenue reaching 403 million yuan in 2024, a year-on-year growth of 73.85% [4][5]. - The company has established a robust distribution network, with over 2,000 dealers across more than 90 countries, enhancing its market reach [4][5].