CFMOTO(SH:603129) 东吴汽车黄细里团队·2025-08-06 13:52Core Viewpoint - The report focuses on the growth path of Chuanfeng Power, a leading domestic power sports company, towards becoming a global leader, highlighting its business segments and market opportunities [3][10]. Group 1: Company Overview - Chuanfeng Power operates in three main business segments: all-terrain vehicles (ATVs), motorcycles, and electric two-wheelers, contributing 48%, 40%, and 3% of revenue respectively in 2024 [4][10]. - Since its listing in 2017, the company's market capitalization has increased 13.3 times, corresponding to an annualized return of 38% [4][10]. Group 2: All-Terrain Vehicles - The all-terrain vehicle market is approximately 950,000 to 1 million units, with North America being the largest market at around 800,000 units [5][79]. - Chuanfeng entered the ATV market in 2005 and has since leveraged its cost-performance advantage to capture the mid-to-low-end market, becoming a leading player in Europe by 2018 [5][10]. - Revenue from the ATV segment is projected to grow from 1.83 billion yuan in 2019 to 7.21 billion yuan in 2024, with a compound annual growth rate (CAGR) of 32% [5][10]. - The company's global market share in ATVs increased from 5.8% in 2020 to 17.6% in 2022, driven by a surge in demand during the pandemic and supply shortages from competitors [5][10]. - In 2024, Chuanfeng plans to launch new high-end products, which are expected to significantly increase average selling price (ASP) and unit profit margins [6][10]. Group 3: Motorcycles - Revenue from Chuanfeng's motorcycle segment is expected to grow from 1.15 billion yuan in 2019 to 6.04 billion yuan in 2024, with a CAGR of 39% [7][10]. - The domestic recreational motorcycle market has seen sales increase from 140,000 units in 2020 to 400,000 units in 2024, indicating significant growth potential [7][10]. - Chuanfeng's export volume of motorcycles surged from 12,000 units in 2020 to 294,000 units in 2024, achieving a CAGR of 124% [8][10]. Group 4: Electric Two-Wheelers - The company launched its electric motorcycle brand ZEEHO in 2020, with sales projected to reach 600,000 to 700,000 units by 2025 [9][10]. - The ZEEHO brand is expected to replicate the success of other electric two-wheeler brands, potentially achieving a revenue scale of nearly 10 billion yuan in the next 3-5 years [9][10]. Group 5: Profitability and Investment Outlook - The combined growth of the ATV, motorcycle, and electric two-wheeler segments positions Chuanfeng for significant revenue and profit growth, warranting a higher valuation [10].