CFMOTO(SH:603129) Soochow Securities·2025-10-20 12:35Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company reported a year-on-year increase of 11% in net profit attributable to shareholders for Q3 2025, driven by strong demand for all-terrain vehicles [7] - The company is a leader in the domestic all-terrain vehicle and motorcycle markets, with three major business segments experiencing high growth [7] - The forecast for net profit attributable to shareholders for 2025-2027 is 1.87 billion, 2.47 billion, and 2.74 billion RMB respectively, with corresponding P/E ratios of 19.0, 14.4, and 13.0 [7] Financial Performance Summary - For Q3 2025, the company achieved total revenue of 5.04 billion RMB, with a year-on-year increase of 11% in net profit attributable to shareholders [7] - The all-terrain vehicle segment saw sales of 49,000 units, with an average selling price (ASP) of 48,000 RMB, reflecting a year-on-year increase of 22.2% [7] - The motorcycle segment experienced a decline in domestic sales, with 66,000 units sold, a year-on-year decrease of 13.9% [7] - The extreme core segment reported a remarkable growth of 349% in sales, reaching 193,000 units [7] - The overall gross margin for Q3 2025 was 26.1%, a decrease attributed to the impact of tariffs and a higher proportion of lower-margin products [7] Earnings Forecast and Valuation - The company’s total revenue is projected to grow from 15.04 billion RMB in 2024 to 29.31 billion RMB in 2027, with a compound annual growth rate (CAGR) of 24.18% [8] - The net profit attributable to shareholders is expected to increase from 1.47 billion RMB in 2024 to 2.74 billion RMB in 2027, with a CAGR of 26.99% [8] - The earnings per share (EPS) is forecasted to rise from 9.65 RMB in 2024 to 17.94 RMB in 2027 [8]