Investment Rating - The report maintains a "Strong Buy" rating for Yadea Holdings (01585.HK) with a target price of HKD 20, compared to the current price of HKD 13.64 [2][4]. Core Views - Yadea Holdings reported a significant revenue increase of 33.0% year-on-year, achieving revenue of HKD 19.17 billion for the first half of 2025, exceeding the upper limit of previous forecasts [2][7]. - The company's net profit attributable to shareholders reached HKD 1.65 billion, reflecting a year-on-year growth of 59.5%, driven by an improved product mix and increased sales of mid-to-high-end products [2][7]. - The company is expected to benefit from the new national standards, which will likely drive industry upgrades and concentrate market share among leading firms [7]. Financial Summary - **Revenue Forecasts**: - 2024A: HKD 28.236 billion - 2025E: HKD 38.167 billion (35.2% growth) - 2026E: HKD 43.230 billion (13.3% growth) - 2027E: HKD 47.103 billion (9.0% growth) [4][8] - **Net Profit Forecasts**: - 2024A: HKD 1.272 billion - 2025E: HKD 3.001 billion (135.8% growth) - 2026E: HKD 3.466 billion (15.5% growth) - 2027E: HKD 3.820 billion (10.2% growth) [4][8] - **Earnings Per Share (EPS)**: - 2024A: HKD 0.41 - 2025E: HKD 0.96 - 2026E: HKD 1.11 - 2027E: HKD 1.23 [4][8] - **Valuation Ratios**: - Price-to-Earnings (P/E) ratio for 2025E: 12.9 - Price-to-Book (P/B) ratio for 2025E: 3.5 [4][8]. Market Performance - The company has shown a strong recovery in sales, with a total of 8.794 million units sold in the first half of 2025, marking a 37.8% increase year-on-year [7]. - The average selling price (ASP) per unit is approximately HKD 1,491, a slight decrease of 2.8% year-on-year [7]. Strategic Outlook - Yadea Holdings is focusing on optimizing its product structure and enhancing its sales system, particularly in high-end product segments [7]. - The company is well-positioned to leverage the upcoming changes in national standards, which are expected to raise safety and production standards in the industry [7]. Conclusion - The report indicates a robust growth trajectory for Yadea Holdings, supported by favorable market conditions and strategic initiatives aimed at enhancing profitability and market share [2][7].