Industry Rating - The industry investment rating is maintained at "Outperform the Market" [1] Core Viewpoints - The report highlights the growth potential of Longxin General's self-owned brand, VOGE, in international markets, driven by product strength, cost performance, and brand recognition [3][21] - The company has successfully developed popular models such as CU525 and DS525, with a strong presence in the European market where high displacement motorcycles are in demand [3][28] - The report emphasizes the company's robust cash flow and the complete digestion of impairment pressures, which positions it well for future growth and potential dividend increases [4][68] Company Overview - Longxin General has two main business segments: motorcycles, contributing over 70% of revenue, and general machinery, contributing around 20% [2] - The motorcycle segment includes various brands and products, with a focus on high-displacement models [2][27] Financial Performance - From 2021 to 2024, the motorcycle business's revenue contribution increased from 57.9% to 75.4%, with total revenue growing from 130.58 billion to 168.22 billion [15][20] - The net profit for 2024 is projected to be 11.2 billion, reflecting a year-on-year increase of 93% [20] Market Dynamics - The European motorcycle market is characterized by a high proportion of high-displacement models, with 60.9% of motorcycle consumption in Italy being over 250cc in 2024 [28] - The trend of consumer downgrading in Europe is expected to benefit Chinese brands like VOGE, which offer higher cost performance compared to Japanese and European competitors [35][36] Strategic Developments - The integration of Longxin General and Zongshen New Manufacturing is expected to enhance collaboration in supply chain, engine technology, and market channels [5][79] - The company has established a strong marketing presence in Europe, with 1,165 overseas outlets, including 876 in Europe, enhancing brand recognition [52]

Industry Rating - The industry investment rating is maintained at "Outperform the Market" [1] Core Viewpoints - The report highlights the growth potential of Longxin General's self-owned brand, VOGE, in international markets, driven by product strength, cost performance, and brand recognition [3][21] - The company has successfully developed popular models such as CU525 and DS525, with a comprehensive product range covering various motorcycle categories [3][27] - The European market presents high value, with a significant proportion of motorcycle consumption in higher displacement categories, indicating an opportunity for Chinese brands to capture market share due to their cost advantages [28][35] Company Overview - Longxin General has two main business segments: motorcycles, contributing over 70% of revenue, and general machinery, contributing around 20% [2] - The motorcycle business includes the VOGE brand, non-road sports motorcycles, and collaborations with BMW [2] Financial Performance - From 2021 to 2024, the motorcycle business's revenue contribution increased from 57.9% to 75.4%, with total revenue growing from 130.58 billion to 168.22 billion [15][20] - The company reported a significant increase in net profit, with a year-on-year growth of 93% in 2024, attributed to revenue growth and reduced impairment losses [20][27] Strategic Developments - The integration of Longxin General and Zongshen New Manufacturing is expected to enhance collaboration in supply chain, engine technology, and market channels [5][79] - The company has a strong cash position, with 77 billion in cash as of Q1 2025, providing a solid foundation for future growth and potential dividend increases [4][68] Market Dynamics - The report notes a trend of consumption downgrade in Europe, where consumers are increasingly opting for lower-priced brands, benefiting Longxin General's competitive pricing strategy [35][36] - The company's marketing efforts and extensive distribution network in Europe have led to increased brand recognition, particularly in Italy and Spain [52][53]