Investment Rating - The report assigns a "Buy" rating for Yadea Holdings (1585.HK) based on its strong performance and growth potential [1]. Core Views - Yadea Holdings has released a positive profit forecast, expecting a net profit of 1.6 billion yuan for the first half of 2025, representing a year-on-year growth of approximately 55% compared to 1.03 billion yuan in the first half of 2024. This growth is attributed to strong product sales and continuous optimization of the product structure [1][2]. - The company is expected to benefit from the significant results of the national "old-for-new" policy for electric bicycles, with an anticipated 30%+ year-on-year growth in electric two-wheeler sales for the first half of 2025 [2]. - Yadea is actively expanding into the mid-to-high-end market with new product lines such as "Modern" and "Crown Power," which are expected to enhance product structure and improve average selling prices and gross margins [2][3]. - The report forecasts Yadea's net profits for 2025, 2026, and 2027 to be 2.85 billion yuan, 3.37 billion yuan, and 3.84 billion yuan respectively, with corresponding P/E ratios of 12.5X, 10.5X, and 9.3X [3]. Financial Summary - For the fiscal year 2024, Yadea's revenue is projected at 28.236 billion yuan, with a significant increase to 39 billion yuan in 2025, reflecting a growth rate of 38% [5]. - The net profit for 2024 is estimated at 1.272 billion yuan, with a substantial increase to 2.85 billion yuan in 2025, indicating a growth rate of 124% [5][7]. - The report highlights key financial ratios, including a gross margin improvement from 15.19% in 2024 to 17.43% in 2025, and a net profit margin increase from 4.51% to 7.31% over the same period [7].