YADEA(HK:01585)2024-04-10 16:00Investment Rating - The report maintains a "Buy" rating for the company [2][5]. Core Views - The company has demonstrated steady revenue growth, with a reported revenue of 34.76 billion yuan in 2023, representing a year-on-year increase of 11.9%. The net profit attributable to shareholders reached 2.64 billion yuan, up 22.2% year-on-year [4][5]. - The company achieved a total sales volume of 16.52 million two-wheeled vehicles in 2023, marking a 17.9% increase, with a market share of 30.2% based on wholesale sales. Electric bicycles saw a significant increase in sales by 28.8%, while electric scooters experienced a slight decline of 1.5% [4]. - The average selling price of vehicles improved in the second half of 2023, with prices of approximately 2,075 yuan and 2,132 yuan in the first and second halves, respectively. This improvement is attributed to a better product mix, with the new product series gaining a 33.2% share in the second half [4]. - The company is actively pursuing vertical integration of its supply chain and has made strategic acquisitions to enhance its capabilities in key technologies, particularly in the battery and electronic control systems for electric two-wheelers [4]. - The company is expanding its overseas market presence, with plans to build multiple factories, including a facility in Vietnam with a production capacity of 2 million units expected to be operational by 2025. Additionally, the introduction of sodium-ion batteries is expected to enhance product offerings and drive sales growth [4]. Financial Summary - For 2023, the company reported total revenue of 34,763 million yuan and a net profit of 2,640 million yuan. Projections for 2024 to 2026 indicate revenues of 40,500 million yuan, 46,562 million yuan, and 53,640 million yuan, respectively, with corresponding net profits of 3,239 million yuan, 3,930 million yuan, and 4,711 million yuan [6][7]. - The gross margin is expected to improve from 16.9% in 2023 to 18.0% by 2026, reflecting the company's focus on product upgrades and cost management [6][7].