CFMOTO(SH:603129) Guoxin Securities·2025-08-15 02:21Investment Rating - The report maintains an "Outperform" rating for the company [6][8]. Core Insights - The company achieved significant growth in revenue and profit in the first half of 2025, with total revenue reaching 9.86 billion yuan, a year-on-year increase of 30.9%, and net profit attributable to shareholders of 1 billion yuan, up 41.4% [2][11]. - The all-terrain vehicle (ATV) and electric motorcycle segments are driving growth, with ATV sales reaching 101,800 units and revenue of 4.731 billion yuan, a year-on-year increase of 33.95% [2][12]. - The introduction of new products, particularly in the four-wheeler segment, is expected to enhance business growth and market competitiveness [4][27]. Financial Performance - In Q2 2025, the company reported revenue of 5.6 billion yuan, a year-on-year increase of 25.5% and a quarter-on-quarter increase of 31.9% [2][11]. - The gross margin for H1 2025 was 28.4%, down 3.1 percentage points year-on-year, while the net margin improved to 10.6%, up 0.7 percentage points year-on-year [3][21]. - The company has adjusted its profit forecasts upward, expecting net profits of 1.849 billion yuan, 2.386 billion yuan, and 2.861 billion yuan for 2025, 2026, and 2027 respectively [6][41]. Product Development - The company is set to launch several new products in 2024, including the U10 PRO and U10 XL PRO, which are expected to significantly enhance its competitive position in the UTV market [4][27]. - The electric motorcycle brand, Jike, is rapidly expanding, with sales of 250,500 units in H1 2025, representing a staggering year-on-year growth of 652.06% [5][38]. - The company is actively enhancing its motorcycle lineup with new models aimed at both domestic and international markets, including the 700MT and 675NK [30][31]. Market Expansion - The company is focusing on expanding its motorcycle export business, particularly in North America and Europe, leveraging its competitive pricing and product diversity [34][35]. - The strategic shift towards a dual focus on domestic and international markets is expected to open up long-term growth opportunities [34][39]. - The establishment of a new production base in Zhejiang Province aims to increase capacity and support the growth of both motorcycle and electric vehicle segments [39].