LONCIN(SH:603766) Huafu Securities·2025-10-31 09:32Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 20% against the market benchmark within the next six months [2][18]. Core Insights - The company reported a revenue of 14.557 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 19%. The net profit attributable to shareholders was 1.577 billion yuan, up 75% year-on-year, while the net profit excluding non-recurring items reached 1.529 billion yuan, an increase of 81% [3][6]. - The motorcycle segment generated sales revenue of 10.714 billion yuan in the first three quarters, a growth of 14.91%. The "Wuji" series products achieved sales of 3.035 billion yuan, up 24.87%, with exports reaching 1.718 billion yuan, a significant increase of 86.92% [4][5]. - The general machinery business saw a revenue of 3.384 billion yuan in the first three quarters, marking a 42.54% increase. The third quarter alone contributed 1.199 billion yuan, a 27% year-on-year growth [5]. Financial Performance Summary - The company's gross margin for Q3 2025 was 18.8%, an increase of 1.15 percentage points year-on-year, attributed to a higher proportion of self-owned brands, which accounted for 26% of total revenue [5]. - The report forecasts net profits for 2025-2027 to be 1.903 billion, 2.374 billion, and 2.774 billion yuan, respectively, with growth rates of 70%, 25%, and 17% [6]. - The projected price-to-earnings (P/E) ratios for 2025-2027 are 15x, 12x, and 10x, respectively, indicating a favorable valuation trend [6].