Core Viewpoint - Q3 performance of Qianli Technology shows a significant decline in net profit due to increased R&D expenses in smart automotive cockpit operating systems, despite stable revenue [1][4] Financial Performance - For the first three quarters, Qianli Technology achieved revenue of 6.946 billion yuan, nearly unchanged from the previous year, but reported a net profit of -176 million yuan, a year-on-year decrease of 826.19% [1] - Revenue projections for 2022 to 2025 show a decline from 8.627 billion yuan in 2022 to 4.149 billion yuan in the first half of 2025, with losses increasing from 262 million yuan in 2023 to 1.16 billion yuan in the first half of 2025 [2] - The automotive segment is the primary revenue source, contributing 60% and 62.6% of total revenue in 2024 and the first half of 2025, respectively [2] Profitability and Margins - The automotive business has a low gross margin, with figures of 4.7%, -5.3%, 1.2%, and -0.9% from 2022 to the first half of 2025, negatively impacting overall gross margins of 8.2%, 4.1%, 6.9%, and 5.5% during the same period [3] - The motorcycle segment maintains a higher gross margin, averaging around 11% [3] Strategic Initiatives - Qianli Technology is focusing on AI-driven strategies to enhance profitability, with significant R&D expenditures expected to continue [4] - The company received 257 million yuan in government subsidies in Q3, which helped mitigate losses, resulting in a net profit of 53.28 million yuan for that quarter [4] Capital and Shareholder Dynamics - As of September 30, Qianli Technology had cash reserves of 3.741 billion yuan and is seeking additional funding through a Hong Kong listing to support its AI strategy and enhance R&D capabilities [5] - The second-largest shareholder, Jianghe Huitong, has seen its stake value exceed 10 billion yuan, with significant shareholding changes linked to the company's strategic direction [5][6] - The stock price has increased over 210% from 3.87 yuan per share in July 2024 to 11.91 yuan by October 31, 2025, reflecting market optimism around the AI strategy [6]

Core Viewpoint - Q3 performance of Qianli Technology shows a significant decline in net profit due to increased R&D expenses in smart automotive cockpit operating systems, despite stable revenue [1][4] Financial Performance - For the first three quarters, Qianli Technology achieved revenue of 6.946 billion yuan, nearly unchanged from the previous year, but reported a net profit attributable to shareholders of -176 million yuan, a year-on-year decrease of 826.19% [1] - The company’s revenue for 2022, 2023, 2024, and the first half of 2025 is projected to be 8.627 billion yuan, 6.698 billion yuan, 6.964 billion yuan, and 4.149 billion yuan respectively [2] - The automotive segment is the primary revenue source, contributing 4.176 billion yuan and 2.599 billion yuan in 2024 and the first half of 2025, accounting for 60% and 62.6% of total revenue [2] Profitability and Margins - The automotive business has a low gross margin, with figures of 4.7%, -5.3%, 1.2%, and -0.9% for 2022, 2023, 2024, and the first half of 2025 respectively [3] - Overall gross margins for the company were 8.2%, 4.1%, 6.9%, and 5.5% during the same periods [3] Strategic Initiatives - Qianli Technology is focusing on AI-driven strategies to enhance profitability, including expanding high-configuration models and reducing costs through platformization [4] - The company plans to use funds raised from its Hong Kong listing to support its AI strategy, enhance R&D capabilities, and strengthen its sales and service networks [5] Shareholder Dynamics - The second-largest shareholder, Jianghe Huitong, holds a stake valued at over 10 billion yuan, with significant ties to the company's strategic direction [6] - The stock price of Qianli Technology has increased over 210% from 3.87 yuan per share on July 1, 2024, to 11.91 yuan per share on October 31, 2025, resulting in a total market capitalization of 53.8 billion yuan [7]

Investment Rating - The investment rating for the company is "Buy" [2] Core Views - The company reported a revenue of 14.557 billion yuan for the first three quarters of 2025, representing a year-on-year growth of 19.14%. The net profit attributable to shareholders was 1.577 billion yuan, up 76.45% year-on-year, with a non-recurring net profit of 1.529 billion yuan, an increase of 81.47% year-on-year [3] - In Q3 2025, the company achieved a revenue of 4.805 billion yuan, a year-on-year increase of 5.55%, and a net profit of 503 million yuan, up 62.48% year-on-year, driven by business scale growth, product structure optimization, and improved operational efficiency [3][4] - The company has seen significant cash flow improvement, with a net cash flow from operating activities of 2.688 billion yuan for the first three quarters of 2025, a substantial increase due to business scale growth and higher receipts from sales and export tax refunds [3] Summary by Sections Revenue Growth - The company has demonstrated robust revenue growth, with the "Wuji" brand maintaining strong performance in overseas markets despite seasonal challenges. The revenue growth rate for "Wuji" is expected to remain in double digits [4] - The company has successfully expanded its sales network, establishing over 1,000 sales points both domestically and internationally, with a focus on deepening its presence in the European market and expanding into Central and South America and Southeast Asia [4] Profitability Improvement - The company's profitability has improved, with gross and net profit margins of 18.80% and 10.42%, respectively, reflecting increases of 1.15 percentage points and 3.71 percentage points year-on-year. The improvement in gross margin is attributed to product structure optimization [5] - The company has effectively controlled costs, with a decrease in the expense ratio to 4.83%, down 4.47 percentage points year-on-year [5] Investment Recommendations - The company has established a strong brand presence in the European market and is expected to continue its expansion in Europe and South America. The all-terrain vehicle business is also seeing significant upgrades and product diversification, which will support future growth [6] - The revenue forecasts for 2025-2027 are 20.0 billion, 23.36 billion, and 26.87 billion yuan, with growth rates of 18.9%, 16.8%, and 15.0%, respectively. The net profit forecasts are 2.03 billion, 2.446 billion, and 2.894 billion yuan, with growth rates of 81%, 20.5%, and 18.3% [6][8]

Core Viewpoint - The company has established a strong brand presence and quality control system through years of collaboration with leading international brands, significantly enhancing product quality and market competitiveness [1][3]. Group 1: Company Development - The company has successfully launched multiple models such as the Wujin 900DSX and 525DSX, which have entered the best-selling lists in Spain and Italy [1]. - The product matrix has expanded to cover a range of motorcycle types and displacements from 200cc to 900cc, with multiple new products released annually to cater to various market segments [1]. - The company has achieved a compound annual growth rate (CAGR) of 66.35% in revenue from the Wujin series from 2019 to 2024, making it a core growth engine [1]. Group 2: Market Opportunities - The domestic motorcycle market is stable but competitive, with structural opportunities arising as consumer demand shifts from traditional transportation to leisure and sports products [2]. - The penetration rate of large-displacement motorcycles in China is below 5%, indicating significant growth potential compared to over 60% in overseas markets [2]. - Emerging markets in Latin America, particularly Argentina, Brazil, Mexico, and Colombia, present growth opportunities for domestic brands due to their high cost-performance ratio [2]. Group 3: Financial Projections - Revenue projections for the company are estimated at 20.0 billion, 23.36 billion, and 26.87 billion yuan for 2025, 2026, and 2027, respectively, with growth rates of 18.9%, 16.8%, and 15.0% [3]. - The net profit attributable to the parent company is projected to be 2.03 billion, 2.45 billion, and 2.89 billion yuan for the same years, with growth rates of 81%, 20.5%, and 18.3% [3]. - Earnings per share (EPS) are expected to be 0.99, 1.19, and 1.41 yuan, with corresponding price-to-earnings (PE) ratios of 13X, 11X, and 9X based on the closing price of 13.15 yuan per share on October 23, 2025 [3].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 20% against the market benchmark within the next six months [2][18]. Core Insights - The company reported a revenue of 14.557 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 19%. The net profit attributable to shareholders was 1.577 billion yuan, up 75% year-on-year, while the net profit excluding non-recurring items reached 1.529 billion yuan, an increase of 81% [3][6]. - The motorcycle segment generated sales revenue of 10.714 billion yuan in the first three quarters, a growth of 14.91%. The "Wuji" series products achieved sales of 3.035 billion yuan, up 24.87%, with exports reaching 1.718 billion yuan, a significant increase of 86.92% [4][5]. - The general machinery business saw a revenue of 3.384 billion yuan in the first three quarters, marking a 42.54% increase. The third quarter alone contributed 1.199 billion yuan, a 27% year-on-year growth [5]. Financial Performance Summary - The company's gross margin for Q3 2025 was 18.8%, an increase of 1.15 percentage points year-on-year, attributed to a higher proportion of self-owned brands, which accounted for 26% of total revenue [5]. - The report forecasts net profits for 2025-2027 to be 1.903 billion, 2.374 billion, and 2.774 billion yuan, respectively, with growth rates of 70%, 25%, and 17% [6]. - The projected price-to-earnings (P/E) ratios for 2025-2027 are 15x, 12x, and 10x, respectively, indicating a favorable valuation trend [6].

Group 1 - The core viewpoint of the report is that Minsheng Securities has given a "recommended" rating to Longxin General (603766.SH) based on strong expected performance growth and business synergies by Q3 2025 [1] - The growth is driven by the rapid development of the Wujing brand through a combination of products and channels [1] - The contribution of mid-to-large displacement motorcycles to the global expansion of the Wujing brand is highlighted as a key factor [1] Group 2 - The report emphasizes the potential risks, including the slow progress of the controlling shareholder's restructuring, lower-than-expected product sales, challenges in overseas expansion, and currency fluctuations [1]

Investment Rating - The report maintains a "Recommended" rating for the company, with a target price based on the closing price of 13.76 CNY per share on October 30, 2025, corresponding to a PE ratio of 14/12/10 for the years 2025-2027 [5][7]. Core Insights - The company reported a revenue of 14.56 billion CNY for the first three quarters of 2025, representing a year-on-year increase of 19.1%, and a net profit attributable to shareholders of 1.58 billion CNY, up 75.5% year-on-year [1]. - In Q3 2025, the company achieved a revenue of 4.80 billion CNY, a 5.6% increase year-on-year, while net profit was 500 million CNY, reflecting a 62.5% year-on-year growth [1][2]. - The growth was driven by strong sales in the mid-to-large displacement motorcycle segment and all-terrain vehicles, with significant contributions from the company's "Wujie" brand [2][3]. Summary by Sections Revenue and Profitability - For Q3 2025, the company's revenue was 4.80 billion CNY, with a year-on-year growth of 5.6% and a quarter-on-quarter decline of 5.9% due to seasonal factors. The net profit for the same period was 500 million CNY, up 62.5% year-on-year but down 11.4% quarter-on-quarter [1][2]. - The gross margin for Q3 2025 was 18.8%, an increase of 1.2 percentage points year-on-year [2]. Product and Market Performance - The "Wujie" brand saw a strong performance, with mid-to-large displacement motorcycle sales reaching 40,000 units from July to September 2025, a 24.5% increase year-on-year. The all-terrain vehicle sales also grew by 51.0% year-on-year [2][4]. - The company expanded its domestic sales network to 1,053 outlets and established 1,292 overseas sales points, with significant growth in Europe [3]. Future Projections - The company is projected to achieve revenues of 20.16 billion CNY, 23.41 billion CNY, and 27.05 billion CNY for the years 2025, 2026, and 2027, respectively. The net profit attributable to shareholders is expected to be 1.98 billion CNY, 2.32 billion CNY, and 2.71 billion CNY for the same years [5][6].

Core Insights - The company reported significant revenue growth driven by increased sales in the automotive and motorcycle sectors, with a net profit increase of over 30% year-on-year, although the net profit excluding non-recurring items remains in a loss state [2][3] Financial Performance - Revenue for Q3 2025 reached approximately 2.76 billion yuan, representing a year-on-year increase of 51.20%, while revenue for the first nine months of 2025 was about 6.95 billion yuan, up 44.27% [2] - Net profit attributable to shareholders for Q3 2025 was approximately 22.11 million yuan, a 60.75% increase year-on-year, and for the first nine months, it was about 53.28 million yuan, up 33.37% [2] - The company reported a net loss of approximately 42.41 million yuan for Q3 2025 when excluding non-recurring items, a decline of 656.76% year-on-year, with a total loss of about 175.91 million yuan for the first nine months, down 826.19% [2][6] - Operating cash flow significantly improved, with a net cash flow from operating activities of approximately 2.51 billion yuan for the first nine months, an increase of 363.95% [2] Revenue Growth Drivers - The substantial increase in revenue was primarily driven by higher sales volumes in the automotive and motorcycle segments, with a total revenue increase of 2.13 billion yuan for the first nine months compared to the previous year [3] Profitability Factors - The growth in net profit was largely supported by two non-recurring factors: an increase in government subsidies amounting to approximately 257 million yuan for the first nine months and enhanced foreign exchange gains [4] - The widening loss in net profit excluding non-recurring items was attributed to increased R&D expenses, which reached approximately 455 million yuan, a 68.15% increase year-on-year, and higher advertising expenses [6] Cash Flow Improvement - The increase in operating cash flow was driven by higher cash receipts from sales, totaling approximately 7.32 billion yuan for the first nine months, compared to 5.53 billion yuan in the previous year, along with increased government subsidies [6]

Market Overview - On October 29, the motorcycle and other sectors rose by 0.55% compared to the previous trading day, with Xinri Co., Ltd. leading the gains [1] - The Shanghai Composite Index closed at 4016.33, up 0.7%, while the Shenzhen Component Index closed at 13691.38, up 1.95% [1] Stock Performance - Xinri Co., Ltd. (603787) closed at 14.00, with a gain of 2.94% and a trading volume of 202,800 shares, amounting to a transaction value of 282 million yuan [1] - Other notable performers included Huayang Racing (920058) with a 2.21% increase, Qianli Technology (601777) up by 2.10%, and Jiangui General (603766) rising by 1.91% [1] - Conversely, companies like Zhenghe Industrial (003033) and Taotao Vehicle (301345) experienced declines of 6.59% and 4.96%, respectively [2] Capital Flow Analysis - The motorcycle and other sectors saw a net outflow of 1.2144 million yuan from institutional investors, while retail investors contributed a net inflow of 1.36 billion yuan [2] - The capital flow data indicates that retail investors were more active in purchasing shares compared to institutional and speculative investors [2] Individual Stock Capital Flow - Spring Power (603129) experienced a significant net outflow from institutional investors of 48.8487 million yuan, while retail investors had a net inflow of 34.6531 million yuan [3] - Taotao Vehicle (301345) had a net inflow of 35.9585 million yuan from institutional investors, but a net outflow from speculative investors of 40.4043 million yuan [3] - Qianli Technology (601777) saw a net inflow of 24.3377 million yuan from institutional investors, while retail investors contributed a smaller net inflow of 698.17 thousand yuan [3]

Core Insights - Hamamatsu City, known as Japan's "Motorcycle Town," is actively supporting innovative startups to foster the growth of world-class companies [1][2][3] Group 1: Support for Startups - The city has implemented the "Hamamatsu Funding Support Project," which provides subsidies for research and equipment investments to selected startups [1] - Pi Photonics, a company specializing in holographic lighting, has received support from local government initiatives and is part of the "J-Startup" program, enhancing its prospects for listing [2] - As of October 2024, Hamamatsu has 84 startups across various sectors, including industrial robotics, digital agriculture, and innovative radiation sensing devices [3] Group 2: Policy Initiatives - Hamamatsu City has introduced a series of industrial policies to align with the trends of green and smart development, focusing on next-generation transportation, health and medical sectors, new agriculture, environment and energy, optics and electronics, digital technology, and robotics [2] - The city offers comprehensive support for entrepreneurs at various stages, including financial subsidies, tax guidance, market access, networking events, and assistance for foreign talent in obtaining residency [2] - A new platform, HamaHub, will be launched in August 2024 to facilitate collaboration between traditional businesses, local government, and startups nationwide, with successful projects eligible for government subsidies [2]