LONCIN(SH:603766) ZHONGTAI SECURITIES·2026-01-23 06:26Investment Rating - The report assigns a "Buy" rating for Longxin General (隆鑫通用) for the first time [2]. Core Insights - Longxin General has a strong focus on motorcycles and general machinery, with recent asset restructuring and the elimination of impairment drag, positioning the company for growth in its core business [5][6]. - The company is expected to benefit from the increasing demand for high-displacement motorcycles domestically and is expanding its global footprint, particularly in Europe and Latin America [7][8]. - The financial forecast indicates significant growth in revenue and net profit over the next few years, with a projected net profit of 2.79 billion yuan by 2027, reflecting a strong upward trend in valuation [9]. Company Overview - Longxin General has been deeply involved in the motorcycle and general machinery sectors since its establishment in 1993, with a focus on expanding its core business [13]. - The company has undergone several strategic shifts, now concentrating on "motorcycles + general machinery" while divesting non-core businesses [24]. - The recent asset restructuring has strengthened resource synergies with Zongshen, enhancing operational efficiency [22]. Financial Analysis - The company has shown robust revenue growth, with a projected increase from 13.066 billion yuan in 2023 to 27.632 billion yuan by 2027, representing a compound annual growth rate (CAGR) of 14% [2]. - The net profit is expected to rise from 583 million yuan in 2023 to 2.787 billion yuan in 2027, with a significant year-on-year growth rate of 92% in 2024 [2][9]. - The motorcycle segment is the primary revenue driver, accounting for approximately 60% of total revenue, with a notable increase in the share of high-value products [37]. Motorcycle Industry Insights - The domestic market for motorcycles is experiencing a shift, with a decline in total sales but an increase in the high-displacement segment, which is expected to grow due to changing consumer preferences [43]. - The company is well-positioned in the high-displacement motorcycle market, with a significant increase in sales volume and market share [45]. - Export markets, particularly in Europe and Latin America, are anticipated to contribute significantly to revenue growth, with the company expanding its presence in these regions [8][9].