Investment Rating - The investment rating for the company is 6.1 out of 10, based on operational performance, industry outlook, valuation, and market sentiment [7]. Core Insights - The company is the largest folding bicycle manufacturer in mainland China, holding a market share of 26.3% by retail volume and 36.5% by retail value as of 2024 [1]. - The company has shown rapid growth, with a compound annual growth rate (CAGR) of 24.1% in sales from 2022 to 2024, and a significant increase in net profit by 69.3% year-on-year as of April 2025 [2]. - The folding bicycle market in China is expected to grow at a CAGR of 14.5% from 2024 to 2029, which is higher than the global average [3][10]. Company Overview - The company was founded in 1982 by Dr. Han Dewei and has a strong brand presence with popular models like the P8 [1]. - As of April 2025, the company collaborates with 38 distributors across 30 provinces in China, covering 680 retail points and has expanded its online sales channels [1]. - The product mix is primarily mid-range, with 69.5% of revenue coming from products priced between 2500-5000 RMB [1]. Financial Performance - Sales figures for the company were 148,956 units in 2022, 156,877 units in 2023, and projected 229,525 units in 2024, indicating a strong growth trajectory [2]. - Revenue for the same years was 254.2 million RMB in 2022, 300.2 million RMB in 2023, and projected 450.7 million RMB in 2024, with a CAGR of 33.1% [2]. - The gross profit margin has remained stable at around 33% as of April 2025 [2]. Industry Status and Outlook - The global bicycle market is projected to reach 178 million units in retail volume by 2024, with a CAGR of 1.7% from 2019 to 2024 [3]. - The folding bicycle segment is expected to grow significantly, with a projected retail volume of 3.7 million units and a retail value of 23.1 billion RMB in 2024 [3]. - Key drivers for market growth include urbanization, innovation in folding bicycle design, and increasing consumer preference for eco-friendly products [3]. Strengths and Opportunities - The company is recognized as a leading player in the folding bicycle industry with strong technical innovation and a diverse product portfolio [4]. - It has established a robust multi-channel sales and distribution network, enhancing its market reach [4]. - The management team is experienced and international, contributing to the company's strategic growth [4]. Use of Proceeds - Approximately 30% of the net proceeds from the IPO will be used for modernizing production systems and expanding operational scale [6]. - Another 30% will be allocated to strengthening the distribution network and strategic brand development [6]. - The remaining funds will support research and development capabilities and general corporate purposes [6].
大行科工（02543）：IPO点评报告