Zhejiang Taotao Vehicles (SZ:301345) Haitong Securities·2024-04-10 16:00Investment Rating - The report assigns an "Outperform the Market" rating to the company, with a target price range of 70.62 to 80.25 CNY per share based on a projected PE ratio of 22-25 times for 2024 [32][33][54]. Core Views - The company is positioned as a leading exporter in the outdoor leisure vehicle market, focusing on electric and gas-powered vehicles and accessories since 2018. It has achieved significant sales rankings on platforms like Amazon and has been recognized for its product certifications [57][58]. - The company has demonstrated strong growth in revenue and net profit, with a compound annual growth rate (CAGR) of 30.09% in revenue and 51.60% in net profit from 2018 to 2022. The forecast for 2023 indicates a revenue of 21.47 billion CNY, a year-on-year increase of 21.62% [58][59]. - The company is expanding its product lines, particularly in electric bicycles, electric golf carts, and high-displacement all-terrain vehicles, which are expected to drive future growth [59]. Financial Performance and Forecast - The company is projected to achieve revenues of 21.46 billion CNY in 2023, 28.14 billion CNY in 2024, and 35.67 billion CNY in 2025, with year-on-year growth rates of 21.6%, 31.1%, and 26.7% respectively. Net profit is expected to reach 2.80 billion CNY, 3.51 billion CNY, and 4.43 billion CNY for the same years, with growth rates of 35.8%, 25.3%, and 26.2% [33][66]. - The company's gross margin is forecasted to be 38.2% in 2024 and 37.9% in 2025, indicating stable profitability [60]. Market Position and Competitive Advantage - The company has established a strong competitive edge through cost-effective manufacturing and robust brand channels, leading to steady sales growth in electric scooters and bicycles [58]. - The company has a high proportion of its sales coming from its own brands, which accounted for over 60% of total sales in recent years [36][37]. Industry Growth and Trends - The non-road leisure vehicle industry has shown solid growth, with significant market potential in electric scooters, electric bicycles, and all-terrain vehicles. The global market for these products is expected to continue expanding [62][63]. - The motorcycle market, particularly for mid-range and high-displacement models, is also growing, driven by rising consumer income and changing preferences [64].