YADEA(01585) 海通国际·2024-06-05 02:01Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of HKD 16.67, based on a 15x PE valuation for 2024 [2][11]. Core Insights - The company reported a revenue of RMB 34.76 billion for 2023, representing an 11.9% year-on-year growth, and a net profit of RMB 2.64 billion, up 22.2% year-on-year [10][11]. - The growth in sales is driven by upgrades in electric two-wheeler products and differentiation in the battery business, with total sales of scooters and e-bikes reaching 16.52 million units, a 17.9% increase year-on-year [10][11]. - The battery business also saw a revenue increase of 19.7% year-on-year to RMB 4.63 billion, supported by R&D investments and supply chain integration [10][11]. Financial Summary - In 2023, the company's revenue from electric two-wheelers and related accessories was RMB 34.54 billion, a 13.6% increase from 2022, with H2 revenue at RMB 17.50 billion, up 7.0% year-on-year [10][11]. - The company’s net profit margin improved to 7.6% in 2023, with a slight increase in net profit margin by 0.6 percentage points year-on-year [4][9]. - The gross profit margin for 2023 was 16.9%, a decrease of 1.2 percentage points from the previous year, attributed to product mix expansion [4][9]. Earnings Forecast - Projected net profits for 2024, 2025, and 2026 are RMB 3.15 billion, RMB 3.73 billion, and RMB 4.20 billion, respectively, with year-on-year growth rates of 19.4%, 18.2%, and 12.8% [2][11]. - The company’s revenue is expected to reach RMB 40.00 billion in 2024, with a growth rate of 15.1% [3][11].