LONCIN(SH:603766) Minsheng Securities·2025-10-31 05:17Investment Rating - The report maintains a "Recommended" rating for the company, with a target price based on the closing price of 13.76 CNY per share on October 30, 2025, corresponding to a PE ratio of 14/12/10 for the years 2025-2027 [5][7]. Core Insights - The company reported a revenue of 14.56 billion CNY for the first three quarters of 2025, representing a year-on-year increase of 19.1%, and a net profit attributable to shareholders of 1.58 billion CNY, up 75.5% year-on-year [1]. - In Q3 2025, the company achieved a revenue of 4.80 billion CNY, a 5.6% increase year-on-year, while net profit was 500 million CNY, reflecting a 62.5% year-on-year growth [1][2]. - The growth was driven by strong sales in the mid-to-large displacement motorcycle segment and all-terrain vehicles, with significant contributions from the company's "Wujie" brand [2][3]. Summary by Sections Revenue and Profitability - For Q3 2025, the company's revenue was 4.80 billion CNY, with a year-on-year growth of 5.6% and a quarter-on-quarter decline of 5.9% due to seasonal factors. The net profit for the same period was 500 million CNY, up 62.5% year-on-year but down 11.4% quarter-on-quarter [1][2]. - The gross margin for Q3 2025 was 18.8%, an increase of 1.2 percentage points year-on-year [2]. Product and Market Performance - The "Wujie" brand saw a strong performance, with mid-to-large displacement motorcycle sales reaching 40,000 units from July to September 2025, a 24.5% increase year-on-year. The all-terrain vehicle sales also grew by 51.0% year-on-year [2][4]. - The company expanded its domestic sales network to 1,053 outlets and established 1,292 overseas sales points, with significant growth in Europe [3]. Future Projections - The company is projected to achieve revenues of 20.16 billion CNY, 23.41 billion CNY, and 27.05 billion CNY for the years 2025, 2026, and 2027, respectively. The net profit attributable to shareholders is expected to be 1.98 billion CNY, 2.32 billion CNY, and 2.71 billion CNY for the same years [5][6].