Core Viewpoint - The company reported a steady revenue growth in 2024, driven by the "old-for-new" policy and product restructuring, despite challenges in certain segments [1][2]. Financial Performance - In 2024, the company achieved a revenue of 21.606 billion, a year-on-year increase of 2.71%, with a net profit attributable to shareholders of 1.988 billion, up 5.68% [1]. - The fourth quarter of 2024 saw a revenue of 4.142 billion, reflecting a 15.69% year-on-year growth, and a net profit of 0.434 billion, which is a 34.24% increase [1]. - The gross profit margin for main products in 2024 was 17.76%, an increase of 1.38 percentage points, attributed to product matrix optimization and cost reduction efforts [2]. Product Segment Performance - Revenue from electric bicycles was 13.037 billion, up 1.50%, while electric two-wheeled motorcycles saw a decline of 10.20% to 5.214 billion [1]. - Electric three-wheeled vehicles experienced a significant growth of 36.07%, generating 1.952 billion, and accessory sales rose by 30.79% to 0.847 billion [1]. Market Strategy - The company focused on international markets, achieving 0.235 billion in overseas revenue, a 3.82% increase, by deepening its global strategy in Southeast Asia [1]. - The company is enhancing its brand presence in the high-end market, which is expected to drive sustained profit growth [3]. Future Outlook - The implementation of the new national standards in 2024 is anticipated to optimize the industry landscape, benefiting leading manufacturers [3]. - The continuation of the "old-for-new" policy in 2025 is expected to stimulate domestic demand [3]. - Projections for net profit attributable to shareholders for 2025-2027 are 2.607 billion, 3.038 billion, and 3.429 billion, respectively, with corresponding PE ratios of 13.8, 11.9, and 10.5 [3].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a total revenue of 21.606 billion yuan in 2024, representing a year-on-year increase of 2.71%, with a net profit attributable to shareholders of 1.988 billion yuan, up 5.68% [3][4] - In Q4 2024, the company reported a total revenue of 4.142 billion yuan, an increase of 15.69%, and a net profit of 434 million yuan, up 34.24% [3][4] - The electric three-wheeler segment showed significant revenue growth, with a year-on-year increase of 36.07% [4] Revenue Breakdown - For 2024, the company's revenue from electric bicycles, electric two-wheel motorcycles, electric three-wheelers, and accessories was 13.037 billion yuan, 5.214 billion yuan, 1.952 billion yuan, and 847 million yuan, respectively [4] - Domestic and overseas revenues were 20.976 billion yuan and 235 million yuan, respectively, with year-on-year growth of 1.92% and 3.82% [4] - The company’s revenue from distribution and direct sales was 20.641 billion yuan and 706 million yuan, respectively, both showing stable growth [4] Financial Performance - In Q4 2024, the company's gross margin was 19.53%, a decrease of 0.42 percentage points, while the net margin improved to 10.55%, an increase of 1.30 percentage points [5] - The financial expense ratio increased due to a decline in interest income from financial management and deposits [5] - The company expects to benefit from the old-for-new policy, which is likely to drive demand for electric bicycles and expand market size [6] Profit Forecast - The company forecasts net profits of 2.616 billion yuan, 3.207 billion yuan, and 3.852 billion yuan for 2025, 2026, and 2027, respectively, with corresponding EPS of 3.04 yuan, 3.72 yuan, and 4.47 yuan [6][8] - The projected PE ratios for the next three years are 13.86, 11.31, and 9.41 times [6][8]