LONCIN(603766) 中邮证券·2024-05-21 08:00Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [19][6]. Core Insights - The company has shown significant growth in its motorcycle and general machinery businesses, with motorcycle sales reaching 73.81 billion yuan and a 31.52% year-on-year increase in revenue from its own brand [4][22]. - The motorcycle segment, particularly the high-end VOGE brand, has seen a revenue increase of 57.05%, contributing to the company's strong market position [4][5]. - Despite challenges in the general machinery sector, the company is adapting by launching new products and optimizing its business structure, indicating potential for future growth [5][6]. Summary by Sections Company Overview - The total share capital is 2.054 billion shares, with a market capitalization of 15.9 billion yuan [2][17]. - The company has a price-to-earnings ratio of 27.68 [4]. Financial Performance - In 2023, the company achieved a revenue of 130.66 billion yuan, a year-on-year increase of 5.29%, and a net profit of 5.83 billion yuan, up 10.65% [22][6]. - For Q1 2024, revenue was 32.96 billion yuan, reflecting a 20.41% increase year-on-year, with a net profit of 2.58 billion yuan, up 39.25% [22][6]. Future Projections - Revenue projections for 2024, 2025, and 2026 are 140.83 billion yuan, 158.64 billion yuan, and 178.33 billion yuan, respectively, with corresponding net profits of 11.14 billion yuan, 13.26 billion yuan, and 16.83 billion yuan [6][7]. - The expected growth rates for revenue are 7.78%, 12.65%, and 12.41% for the respective years [7]. Market Position and Strategy - The company is expanding its global sales network, with 1,334 sales outlets worldwide, including 864 in foreign markets [5][4]. - The motorcycle industry is facing a decline in domestic sales, but export markets are showing resilience, which the company is capitalizing on [5][4].