Investment Rating - The report maintains a "Buy" rating for Yadea Holdings (01585.HK) [1] Core Views - Yadea achieved record high revenue and profit in 2025, with total revenue of RMB 37.01 billion, a year-on-year increase of 31.1%, and a net profit attributable to shareholders of RMB 2.91 billion, up 128.8% year-on-year [1] - The company is accelerating its high-end product strategy and international expansion, particularly in Southeast Asia, which is expected to open new growth avenues [2][3] - The gross margin reached a historical high of 19.1%, driven by product premiumization and cost optimization [2] Summary by Relevant Sections Performance Overview - In the second half of 2025, Yadea's revenue was RMB 17.82 billion, a year-on-year increase of 28.9%, with a net profit of RMB 1.26 billion, up 429% [1] - Total sales volume reached 16.27 million units in 2025, a 25% increase year-on-year, with an average retail price of RMB 2,275, up RMB 106 from 2024 [2] Product and Market Strategy - High-end products priced above RMB 3,000 accounted for 57.4% of retail sales, with a net profit per unit of approximately RMB 179 [2] - The company is expanding its product lines in electric bicycles, batteries, and three-wheeled vehicles, with significant growth in all categories [2][3] Financial Projections - Expected net profits for 2026, 2027, and 2028 are RMB 3.32 billion, RMB 3.86 billion, and RMB 4.11 billion, representing year-on-year growth rates of 14%, 16%, and 6% respectively [4] - The current price-to-earnings (P/E) ratios for 2026, 2027, and 2028 are projected to be 11, 10, and 9 times [4]