Investment Rating - The report initiates coverage on Luyuan Group with a "Buy" rating, based on a valuation range of 17.6-21.5x PE for 2024, implying a market cap range of 3.17-3.88 billion RMB [3][4] Core Views - Luyuan Group, a pioneer in China's electric two-wheeler industry, is poised for accelerated growth driven by market expansion and industry optimization [1] - The company's focus on intelligent products and liquid-cooled motor technology positions it for a second wave of growth [1] - The electric two-wheeler industry is experiencing high growth due to policy support, demand recovery, and supply-side improvements [2] Industry Analysis Policy Drivers - New national standards for electric two-wheelers have catalyzed demand and accelerated industry consolidation [2][23] - The standards have led to a replacement cycle for non-compliant vehicles, benefiting leading companies [28] Demand Drivers - Post-pandemic economic recovery has boosted personal mobility consumption, benefiting electric two-wheelers [2][31] - The rise of instant delivery and shared mobility services has created new demand for electric two-wheelers [34][40] Supply Drivers - The industry is shifting from price competition to quality competition, with brands focusing on intelligent and self-designed products [2][45] - Falling raw material prices have improved industry profitability [2][52] Company Strengths R&D and Product Advantages - Luyuan has over 20 years of R&D experience and has developed a comprehensive core technology matrix, including the industry-first liquid-cooled motor technology [3][55] - The company offers a diverse product portfolio covering low, mid, and high-end segments, with a focus on the mid-to-high-end market [3][59] Production Capacity Expansion - Luyuan plans to upgrade existing production facilities and expand capacity to 9.5 million units by 2026, a threefold increase in three years [3][60] Channel Advantages - The company has established a multi-dimensional channel matrix combining online and offline, B2C and B2B sales [3][62] - Luyuan has over 11,400 retail stores and 1,314 distributors in China as of April 2023 [62] Intelligent Transformation - Luyuan is accelerating its penetration into the intelligent market through partnerships with shared mobility platforms like Didi's Qingju [3][65] - The company has launched 16 intelligent models, accounting for 23.5% of its total product lineup as of April 2023 [64]
绿源集团控股：市场多点扩容+格局持续优化，电动两轮车业务有望迎发展提速！