Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [4][6]. Core Insights - Longxin General has established itself as a leader in the motorcycle industry in China, with a successful transition from "product export" to "brand export" through its high-end motorcycle brand "VOGE" [2][14]. - The company is expected to become the largest motorcycle enterprise in China and rank among the top globally following the integration of its operations with Zongshen Group [2][14]. - The brand "Wuji" has positioned itself as a leader in the high-end motorcycle segment, achieving a market share of 14.2% for motorcycles above 250cc in 2024, a 5 percentage point increase from 2022 [3][4]. Financial Performance - The company reported a revenue of 16.82 billion yuan in 2024, a year-on-year increase of 29%, with a net profit of 1.12 billion yuan, up 92% [16][29]. - The forecast for net profit from 2025 to 2027 is 1.90 billion yuan, 2.37 billion yuan, and 2.77 billion yuan, representing growth rates of 70%, 25%, and 17% respectively [4][16]. - The company's earnings per share (EPS) is projected to increase from 0.93 yuan in 2025 to 1.35 yuan in 2027 [4][16]. Brand Competitiveness - Wuji has successfully launched several popular models, including SR150GT and DS900X, and has gained significant recognition in the European market, with over 95% of its 800cc motorcycle exports going to Europe in 2024 [3][4]. - The partnership with BMW since 2005 has enhanced the company's quality control capabilities, facilitating its entry into the European market [3][4]. - The company has focused on brand rejuvenation and increased marketing efforts, with advertising expenses projected to reach 80 million yuan in 2024, a 96% increase year-on-year [3][4]. Market Trends - The motorcycle export market has shown significant growth, with a projected export value of 8.716 billion USD in 2024, a 24.75% increase from the previous year [54][60]. - The company has been expanding its presence in emerging markets, particularly in Latin America and Africa, where demand for motorcycles is increasing [106][108]. - The European motorcycle market is stable and growing, with a market size of approximately 16.3 billion USD in 2023, driven by high demand for large displacement motorcycles [87][92].

Investment Rating - The report suggests a positive outlook for the motorcycle industry, particularly for Chinese brands focusing on large-displacement exports, recommending companies such as Chunfeng Power, Longxin General, and Qianjiang Motorcycle [3]. Core Insights - The overseas motorcycle market presents a nearly trillion-yuan opportunity, with projected sales exceeding 40 million units and a market size of 932 billion yuan by 2024, indicating significant growth potential for Chinese brands [2][7]. - The report highlights the differentiation in market demands across regions, with Europe, North America, and Australia leading in recreational motorcycles, while Asia, Africa, and Latin America dominate the utility motorcycle market [2][3]. - The transition from OEM to independent brand exports for Chinese manufacturers is underway, with a notable increase in large-displacement motorcycle exports, which are expected to grow at a CAGR of 67.5% from 2022 to 2024 [3]. Summary by Sections Overseas Overview: A Trillion-Yuan Market - The overseas motorcycle market is projected to reach sales of over 40 million units and a market size of 932 billion yuan by 2024, with significant growth opportunities for Chinese brands [7][16]. - Major markets include Southeast Asia (230 billion yuan), South Asia (270 billion yuan), Europe (160 billion yuan), Latin America (130 billion yuan), and North America (56.2 billion yuan) [2][7]. Market Segmentation: Recreational and Utility Markets - North America is characterized by a high-end market with over 90% penetration of large-displacement motorcycles, while Latin America is a mid-range market with a growing demand for large-displacement models [2][3]. - The European market is expanding, with a focus on high-end motorcycles, while Southeast Asia and South Asia are dominated by low-end utility motorcycles [2][3]. Chinese Brands: Transitioning to Independent Exports - The export of Chinese motorcycles is shifting from small-displacement OEM models to independent large-displacement brands, with significant growth in exports to Europe and Latin America [3]. - Key players in large-displacement exports include Chunfeng, Longxin, and Qianjiang, with Chunfeng showing remarkable growth in export volumes [3].