LONCIN(SH:603766) Guotou Securities·2025-08-27 13:46Investment Rating - The investment rating for the company is "Buy-A" with a 6-month target price of 16.56 CNY per share [6]. Core Views - The company reported excellent Q2 2025 performance with revenue of 9.752 billion CNY, a year-on-year increase of 27.21%, and a net profit attributable to shareholders of 1.074 billion CNY, up 82.26% year-on-year [1]. - The company's self-owned brand, Wujie, is experiencing rapid growth, with H1 2025 sales reaching 1.980 billion CNY, a year-on-year increase of 30.23% [2]. - The company is expanding its product categories and enhancing its marketing and distribution capabilities, leading to improved product competitiveness [4]. Summary by Sections Financial Performance - In Q2 2025, the company achieved a comprehensive gross margin of 19.71%, an increase of 0.30 percentage points year-on-year and 1.62 percentage points quarter-on-quarter [3]. - The company reported a net profit of 567 million CNY in Q2 2025, reflecting a year-on-year increase of 70.99% and a quarter-on-quarter increase of 11.93% [3]. Market Expansion - The company is focusing on expanding its Wujie brand in the domestic market, particularly in the mid-to-large displacement motorcycle segment, with significant sales growth expected from new product launches [4]. - In overseas markets, particularly Italy and Spain, the company has seen substantial growth, with a 2024 revenue of 1.35 billion CNY from overseas, a year-on-year increase of 107.5% [10]. Future Projections - The company is projected to achieve net profits of 1.89 billion CNY, 2.22 billion CNY, and 2.69 billion CNY for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 13.8, 11.7, and 9.7 [10][11].