Zhejiang Taotao Vehicles (SZ:301345) ZHESHANG SECURITIES·2025-06-12 00:23Investment Rating - The report maintains a "Buy" rating for the company [3] Core Views - The company is expected to strengthen its market position as the competitive landscape improves, with a projected increase in market share despite challenges [2] - The company has signed an investment agreement with K-Scale Labs, a US-based humanoid robotics company, to enhance its technological capabilities [1] Summary by Sections Investment Highlights - The company's US subsidiary RevEdge Inc. will invest $2 million in K-Scale Labs, which focuses on an open-source AI platform for robotics [1] - The investment aims to integrate the company's North American manufacturing and sales channels with K-Scale Labs' technological advantages [1] - The initial anti-dumping and countervailing duties imposed on electric golf carts exported from China to the US are around 248% and 28%, respectively, leading to a significant decline in exports [2] - The company is enhancing its overseas production capabilities, with a focus on Vietnam and potential expansion in Thailand, which positions it favorably in the market [2] Financial Forecast and Valuation - Revenue projections for 2025-2027 are estimated at 3.81 billion, 4.82 billion, and 5.95 billion yuan, representing year-on-year growth rates of 28%, 27%, and 23% respectively [3] - Net profit attributable to the parent company is forecasted to be 591 million, 774 million, and 969 million yuan for the same period, with growth rates of 37%, 31%, and 25% [3] - The company is expected to maintain a compound annual growth rate (CAGR) of 31% from 2024 to 2027, with price-to-earnings (P/E) ratios of 17, 13, and 11 for 2025-2027 [3] Market Position and Product Development - The company has seen a significant increase in revenue from electric golf carts, with a growth rate exceeding 900% in 2024, and over 40% growth in electric bicycles and off-road motorcycles [2] - The DENAGO EV product has gained popularity in North America, attracting endorsements from NBA stars and celebrities, indicating strong brand penetration [2]