Group 1 - The core viewpoint of the report is that Longxin General (603766.SH) is recommended for investment due to its strong market position and growth potential in the motorcycle industry [2] - Longxin General is recognized as an experienced player in the motorcycle export market, indicating its ability to adapt and thrive in changing market conditions [2] - The domestic motorcycle market is experiencing a clear structural evolution, with an accelerated penetration of medium and large displacement motorcycles [2] - The export of medium and large displacement motorcycles is gaining momentum, creating a new growth trajectory for the industry [2] - Longxin General is positioned to leverage its strengths and introduce competitive products, aiming to expand its presence from Europe to a global market [2]

Core Viewpoint - The company, Longxin General, is a leading player in the domestic motorcycle industry, with a focus on promoting its own brands and expanding both domestic and international sales, particularly in the high-displacement motorcycle segment [2][4][11]. Group 1: Company Performance - Longxin General's motorcycle export volume is expected to exceed 1.5 million units in 2024, ranking first in the industry [2]. - The company's motorcycle business revenue is projected to reach 12.69 billion yuan in 2024, a year-on-year increase of 34.0%, marking a historical high [2]. - The company's high-end brand, Wujie, is expected to achieve sales revenue of 3.15 billion yuan in 2024, a year-on-year growth of 111.4% [5]. - The overall revenue for Longxin General is forecasted to be 16.82 billion yuan in 2024, with a compound annual growth rate (CAGR) of 9.6% from 2019 to 2024 [17]. Group 2: Industry Trends - The domestic market for high-displacement motorcycles (over 250cc) has seen a significant increase in demand, with penetration rates rising from 2.5% in 2020 to 11.4% in the first half of 2025 [3]. - The penetration rate of high-displacement motorcycles is expected to reach 12% by 2025 and 20% by 2030, corresponding to sales volumes of 600,000 and 1 million units, respectively [3]. - The global motorcycle market is estimated to have a capacity of approximately 50 million units, with the overseas market for motorcycles over 250cc expected to be 5.5 million units in 2024, significantly larger than the domestic market [4][58]. Group 3: Competitive Landscape - The competitive landscape for high-displacement motorcycles is evolving, with domestic brands like Longxin, Chuanfeng, and Qianjiang gaining market share, while foreign brands are losing ground [52][56]. - The market concentration for high-displacement motorcycles in China is increasing, with the top three companies holding a combined market share of 56.5% by 2024 [52]. - Longxin General's Wujie brand has established a strong presence in the European market, achieving sales revenue of 1.02 billion yuan in 2024, with a significant market share in Spain and Italy [5][12]. Group 4: Future Outlook - The company is expected to continue expanding its product offerings and market presence, with new models set to launch in 2025, including the RR500S and CU625 [5]. - Longxin General aims to leverage its brand strength in Europe to penetrate other markets in Latin America and Southeast Asia, fostering a "1+N" market development strategy [5][12]. - The company's net profit is projected to grow significantly, reaching 1.12 billion yuan in 2024, a year-on-year increase of 92.3% [27].

Investment Rating - The report assigns an investment rating of "Outperform the Market - A" for the motorcycle industry, with a specific buy recommendation for Chuanfeng Power (603129) [4]. Core Insights - The global market for mid-to-large displacement motorcycles is expanding, with significant growth potential in various regions, particularly in Europe, Latin America, and China [1][11]. - Domestic brands in China are enhancing their technological capabilities and product quality, allowing them to compete effectively in both domestic and international markets [2][3]. - The export of mid-to-large displacement motorcycles from China is experiencing rapid growth, with a projected increase of 84.5% year-on-year in 2024 [3]. Summary by Sections 1. Global Mid-to-Large Displacement Motorcycle Market - The global motorcycle market is expected to reach approximately 61.8 million units in 2024, with around 4 million units classified as mid-to-large displacement (over 250cc) [11][12]. - The European market is projected to have a total of about 1.45 million motorcycles in 2024, with a penetration rate of 60-65% for mid-to-large displacement models [15][16]. - In Latin America, the market is expected to grow significantly, reaching approximately 6.46 million units in 2024, with mid-to-large displacement motorcycles accounting for about 10% [22][23]. - The U.S. market remains stable at around 500,000 units, with over 90% being mid-to-large displacement motorcycles [30][31]. - The Chinese market is anticipated to see a 17% year-on-year increase in mid-to-large displacement motorcycle sales, reaching 368,000 units in 2024 [1][40]. 2. Domestic Brands Strengthening Capabilities - Domestic brands are focusing on technological research and development, improving product strength to compete with international brands [2][3]. - The import of mid-to-large displacement motorcycles into China is expected to decrease significantly, with imports projected at 46,000 units in 2024, down 63.9% from 2022 [2]. - The top five exporters of mid-to-large displacement motorcycles from China are Shengshi, Chuanfeng, Wujin, Zongshen, and Qianjiang, with a concentrated market share of over 80% [3]. 3. Competitive Advantages in Global Markets - Companies with strong technological, product, brand, and localization capabilities are likely to gain competitive advantages in the global market [4]. - Domestic brands are transitioning from reverse engineering to independent innovation, with several new multi-cylinder engines set to launch in 2024 [4]. - A comprehensive product matrix is essential for brands to meet diverse global market demands, with brands like Chuanfeng and Wujin actively expanding their product offerings [4]. 4. Key Focus Stocks - The report highlights Chuanfeng Power, Longxin General, and Qianjiang Motorcycle as key stocks to watch in the motorcycle industry [4][7].

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].