Core Viewpoint - Yadea Holdings is experiencing a significant rebound in business, with projected net profit for 2025 expected to reach at least 2.9 billion yuan, a substantial increase from 1.27 billion yuan in the previous year, driven by increased electric two-wheeler sales and optimized product structure [2][3]. Group 1: Financial Performance - In the first half of 2025, Yadea sold a total of 8.7935 million electric scooters and bicycles, an increase of approximately 2.4 million units compared to the same period last year, resulting in a main business revenue of 19.186 billion yuan, a surge of about 33.1% [4]. - The company faced a profit decline in 2024 due to decreased sales and lower inventory prices, but has since turned around to achieve a new profit peak [3]. Group 2: Strategic Initiatives - Yadea has adopted a youth-oriented strategy, launching the "Modern Series" specifically for female riders, emphasizing retro and luxury aesthetics, and introducing the "Crown T35" model inspired by robotics to attract young riders seeking stylish design and performance [5]. - The company has also engaged Wang Hedi as a brand ambassador since the end of 2024, which has significantly contributed to enhancing brand awareness and engagement [5]. Group 3: Regulatory and Market Environment - The favorable policy environment, including trade-in programs, new national standards, and the "white list" policy, has benefited leading two-wheeler companies [4]. - Yadea has issued an apology for design oversights in its "Maodou" series, addressing issues such as child safety and storage space, and has launched 68 models compliant with new national standards to cater to various daily commuting scenarios [6]. Group 4: Expansion and Innovation - Yadea is strengthening its focus on smart technology and international expansion, having established a presence in 100 countries and set up ten major smart production and research bases in regions including China, Vietnam, Indonesia, and Thailand [9]. - The company showcased its new electric motorcycle flagship at the Milan International Two-Wheeler Exhibition, featuring a long-range version with a range of 170 kilometers, specifically targeting European users [10]. - Yadea has introduced a comprehensive energy replenishment ecosystem covering various scenarios, including 24-hour self-service battery swap stations and solar energy systems, along with a rapid charging solution [10].

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company reported a revenue of 19.186 billion yuan in the first half of 2025, representing a year-on-year growth of 33.1%, and a net profit attributable to shareholders of 1.649 billion yuan, up 59.5% year-on-year [7] - The gross margin improved to 19.6%, an increase of 1.6 percentage points year-on-year, attributed to the expansion and optimization of the product mix [7] - The company achieved significant sales growth, with electric scooter and bicycle sales reaching 8.7935 million units, a 37.8% increase year-on-year, supported by continuous product development and an optimized distribution network [7] - The forecast for net profit attributable to shareholders for 2025-2027 is 3.057 billion, 3.535 billion, and 3.844 billion yuan respectively, with corresponding PE ratios of 12.76, 11.03, and 10.15 [7] Financial Performance Summary - Revenue projections for the company are as follows: 34.763 billion yuan in 2023, 28.236 billion yuan in 2024, 36.865 billion yuan in 2025, 43.694 billion yuan in 2026, and 48.321 billion yuan in 2027, with a revenue growth rate of 11.92% in 2023, -18.77% in 2024, and 30.56% in 2025 [6] - The net profit attributable to shareholders is projected to be 2.640 billion yuan in 2023, 1.272 billion yuan in 2024, 3.057 billion yuan in 2025, 3.535 billion yuan in 2026, and 3.844 billion yuan in 2027, with a net profit growth rate of 22.17% in 2023, -51.81% in 2024, and 140.25% in 2025 [6] - The company’s earnings per share (EPS) are expected to be 0.89 yuan in 2023, 0.42 yuan in 2024, 0.98 yuan in 2025, 1.14 yuan in 2026, and 1.23 yuan in 2027 [6]