Investment Rating - The report assigns a "Buy" rating for Luyuan Group Holdings (2451.HK) based on its strong performance and growth potential in the E-Bike market [1]. Core Insights - Luyuan Group is advancing its high-end E-Bike product line with the recent launch of the G02-Sport, priced from CNY 15,999, featuring advanced technology such as 8 ms smart shifting and a lightweight carbon fiber frame [2]. - The company's electric two-wheeler business is experiencing steady growth, with revenue from electric bicycles, scooters, batteries, and components reaching CNY 19.97 billion, CNY 3.54 billion, CNY 5.97 billion, and CNY 1.07 billion respectively in H1 2025, reflecting year-on-year growth of 29.2%, 2.6%, 16.5%, and 2.8% [3]. - Luyuan Group has established a robust offline distribution network covering 336 cities in mainland China, with over 14,000 retail stores, and has successfully integrated online and offline sales channels [3]. - The company is focusing on complementary business lines, including battery swapping services, rental services tailored for urban transport, and aftermarket services to enhance its ecosystem strategy [4]. Financial Performance - The gross margin for H1 2025 was reported at 13.6%, an increase of 1.6 percentage points year-on-year [4]. - The company expects net profits for 2025, 2026, and 2027 to be CNY 200 million, CNY 256 million, and CNY 324 million respectively, with corresponding P/E ratios of 20.2X, 15.8X, and 12.5X [5]. - Revenue projections for 2025, 2026, and 2027 are CNY 6.529 billion, CNY 7.806 billion, and CNY 9 billion, indicating growth rates of 29%, 20%, and 15% respectively [8].