CFMOTO(SH:603129) Haitong Securities·2024-05-16 08:32Investment Rating - The report maintains an "Outperform the Market" rating for the company [4][19]. Core Insights - The company reported revenues of 12.11 billion and 3.06 billion yuan for 2023 and Q1 2024, respectively, with year-on-year growth of 6.44% and 6.31%. The net profit attributable to the parent company was 1.008 billion and 278 million yuan, reflecting a year-on-year increase of 43.65% and 31.97% [6][18]. - The gross margin decreased year-on-year, while the net profit margin improved due to a significant reduction in sales expenses [6]. - The company is expanding its retail network internationally, with over 4,000 retail outlets in more than 100 countries and regions, and has established production bases in China, Thailand, and Mexico [7]. Financial Summary - The company’s total revenue is projected to grow from 12.11 billion yuan in 2023 to 20.80 billion yuan by 2026, with a compound annual growth rate (CAGR) of approximately 18.8% [8][11]. - The net profit is expected to increase from 1.008 billion yuan in 2023 to 1.892 billion yuan in 2026, with a CAGR of about 24.2% [11][19]. - The earnings per share (EPS) is forecasted to rise from 6.70 yuan in 2023 to 12.57 yuan in 2026 [11]. Market Position and Competitors - The company is positioned favorably against its peers, with a projected P/E ratio of 20.7 to 16.6 for 2024-2025, compared to comparable companies [19].