Group 1 - The company reported a revenue of 9.752 billion yuan for the first half of 2025, representing a year-on-year increase of 27.21% [1] - The net profit attributable to shareholders reached 1.074 billion yuan, up 82.26% year-on-year, with basic earnings per share of 0.5231 yuan, also reflecting an 82.26% increase [1] - The net cash flow from operating activities surged to 1.822 billion yuan, marking a significant increase of 159.29% year-on-year [1] Group 2 - The company's strategic focus on "stock optimization and incremental breakthroughs" has led to steady growth and quality improvement in performance [1] - The comprehensive gross profit margin reached 19%, showing a stable upward trend [1] - Revenue from high-end self-owned brands amounted to 2.334 billion yuan, a year-on-year increase of 42.43%, accounting for 24% of total revenue, becoming a core driver of performance growth [1] Group 3 - The motorcycle business generated sales revenue of 7.273 billion yuan, reflecting a year-on-year growth of 23.14%, with export earnings reaching 645 million USD, up 34.29% [1] - The high-end VOGE series products achieved sales revenue of 1.980 billion yuan, with a growth rate of 30.23%, and export sales revenue of 1.190 billion yuan, increasing by 83.31% [1] Group 4 - The company expanded its domestic sales network to 1,053 outlets and established 1,292 overseas points, with a focus on Europe, Argentina, and Malaysia [2] - The motorcycle engine business reported sales revenue of 1.222 billion yuan, a growth of 35.77%, with sales of engines above 250cc increasing by 71.81% [2] - The general machinery segment achieved sales revenue of 2.185 billion yuan, up 52.82%, with household generator revenue increasing by 142.01% [2]

Group 1 - The company achieved operating revenue of 9.752 billion yuan, a year-on-year increase of 27.21%, and a net profit attributable to shareholders of 1.074 billion yuan, up 82.26% [1] - The comprehensive gross profit margin reached nearly 19%, showing steady growth [1] - High-end self-owned brands performed exceptionally well, generating revenue of 2.334 billion yuan, a year-on-year increase of 42.43%, accounting for approximately 24% of total operating revenue [1] Group 2 - The motorcycle business segment generated sales revenue of 7.273 billion yuan, a year-on-year increase of 23.14% [2] - Popular models such as the VOGE series continued to sell well, with new products launched targeting both domestic and overseas markets [2] - The company established 1,053 sales outlets domestically and 1,292 outlets overseas, enhancing its global presence [2] Group 3 - The general machinery business achieved sales revenue of 2.185 billion yuan, a year-on-year increase of 52.82% [3] - Demand for household generators surged, with sales revenue increasing by 142.01%, and riding lawnmower sales grew by 77.55% [3] - New product development is progressing, with a zero-turn lawn mower prototype completed and an intelligent lawn mowing robot entering final testing [3] Group 4 - The growth of the company's performance is closely linked to industry trends, with motorcycle sales in China reaching 10.6146 million units in the first half of 2025, a year-on-year increase of 11.54% [3] - Exports of motorcycles also saw significant growth, with 6.4611 million units exported, up 25.44% [3] - The general machinery sector also experienced growth in exports during the same period [3] Group 5 - According to research from Minsheng Securities, the global motorcycle market demand is steadily increasing, and domestic companies like 隆鑫通用 have significantly improved their product offerings and competitiveness [4] - The company is expected to benefit from dual expansion in product and channel for its VOGE brand, leading to accelerated growth [4]

Investment Rating - The report maintains a "Recommended" rating for the company [6][8]. Core Viewpoints - Longxin General (隆鑫通用) is a leading player in the domestic motorcycle industry, with motorcycle export sales expected to exceed 1.5 million units in 2024, ranking first in the industry. The motorcycle business revenue is projected to reach 12.69 billion yuan in 2024, a year-on-year increase of 34.0%, marking a historical high [3][4]. - The domestic motorcycle market is experiencing a clear structural evolution, with the penetration of mid-to-large displacement motorcycles accelerating. The penetration rate of mid-to-large displacement motorcycles in domestic sales has increased from 2.5% in 2020 to 11.4% in the first half of 2025, with expectations to reach 12% and 20% by 2025 and 2030, respectively [3][48]. - The global motorcycle market has a capacity of approximately 50 million units, with the overseas market for motorcycles above 250cc expected to have a market space of 5.5 million units in 2024, which is over nine times the domestic sales volume [4][12]. Summary by Sections Company Overview - Longxin General is a diversified enterprise focused on the research, production, and sales of motorcycles, engines, general machinery, and other products. The company has undergone several strategic phases since its establishment, including partnerships with BMW and the launch of its high-end brand, Wujie [14][38]. - The company's revenue has shown steady growth, with a compound annual growth rate (CAGR) of 9.6% from 2019 to 2024. The motorcycle and engine business contributed over 75% of the total revenue in 2024 [18][39]. Motorcycle Industry - The domestic motorcycle market is witnessing a shift towards mid-to-large displacement motorcycles, driven by increasing consumer demand for leisure and recreational use. The market potential remains significant, with a projected increase in sales and penetration rates [40][48]. - The report highlights the competitive landscape of the motorcycle export market, emphasizing the advantages of domestic brands in terms of product quality and cost-effectiveness, which positions them favorably against international competitors [4][12]. Financial Forecast and Investment Suggestions - The company is expected to achieve revenues of 20.16 billion yuan in 2025, with net profit attributable to shareholders projected at 1.88 billion yuan. The earnings per share (EPS) are forecasted to be 0.91 yuan, with corresponding price-to-earnings (PE) ratios of 14, 12, and 10 for the years 2025, 2026, and 2027, respectively [6][7]. - The investment suggestion is based on the dual expansion of the Wujie brand in both product and channel aspects, which is anticipated to accelerate growth through volume and profit resonance [6][39].

Core Viewpoint - The company is initiating coverage on Longxin General with a "Buy" rating and a target price of 18.40 yuan, corresponding to a 20x PE for 2025, highlighting its strategic shift from low-end OEM to self-owned mid-to-high-end brands [1] Group 1: Company Strategy and Market Position - Longxin has transformed its business model, with the "Wujie" brand contributing nearly 20% of revenue by 2024, enhancing pricing power and value chain positioning in the motorcycle business [1] - The acquisition of a controlling stake by Zongshen in 2024 is expected to create the largest motorcycle manufacturer in the industry, with a projected market share of 17% [1] - The complementary product lines and platforms of Longxin and Zongshen are anticipated to generate strong synergies, further boosting growth potential [1] Group 2: Market Demand and Product Performance - The demand for large-displacement motorcycles is rising, with domestic sales expected to increase by 20% year-on-year to 396,000 units in 2024, raising the market share of large-displacement motorcycles to 8.6% [2] - Longxin's "Wujie" brand has successfully captured market opportunities, launching competitive products like CU525, which has helped increase its market share to 14% in 2024 [2] - The company is projected to increase its market share to 16.2% within three years, with expected sales growth of 15%/10%/9% from 2025 to 2027 [2] Group 3: Export Growth and Future Prospects - The export business of "Wujie" is thriving, with a compound annual growth rate (CAGR) of 71% over the past four years, driven by partnerships with quality local agents and differentiated product offerings [3] - Europe and Latin America are identified as key growth regions, with expectations to capture 5% market share in Europe by 2027 and 2% in Latin America within three years [3] - The company anticipates maintaining a robust total sales growth rate of nearly 40% from 2025 to 2027 [4] Group 4: Financial Forecast and Valuation - Revenue is projected to grow by 15.3%/17.6%/18.4% from 2025 to 2027, with net profit expected to increase by 69%/24%/21%, reaching 1.90 billion, 2.36 billion, and 2.85 billion yuan respectively [6] - The average PE for comparable companies is estimated at 20x for 2025, leading to a target price of 18.40 yuan for Longxin [6] Group 5: Market Concerns and Growth Potential - Despite market concerns about saturation in the domestic large-displacement motorcycle sector, there remains significant growth potential compared to markets like Italy, Japan, and Brazil [5] - The company plans to expand its product offerings to fill gaps in engine platforms and segmented categories, which could further enhance its domestic market share [5]

Investment Rating - The report assigns a "Buy" rating for Longxin General [1] Core Views - Longxin General is positioned as a leader in the motorcycle industry, transitioning from an OEM to three major self-owned brands, focusing on the motorcycle and general machinery sectors [7][13] - The company has experienced steady revenue growth, with a significant profit turnaround starting in 2022, driven by its core motorcycle business [21][22] - The strategic transformation initiated in 2021 has allowed the company to focus on its main business, shedding non-core operations and enhancing operational efficiency [32][42] Summary by Sections Company Overview - Longxin General, founded in 1993, has evolved from an engine OEM to a prominent motorcycle manufacturer with a diverse product matrix, including the high-end brand VOGE and the electric motorcycle brand BICOSE [13][15] - The company has established a strong manufacturing capability through partnerships with global brands like BMW, enhancing its competitive edge [14] Company Transformation - The strategic pivot in 2021 marked a significant shift towards focusing on motorcycles and general machinery, aiming to strengthen its core business [32][41] - The successful completion of a share restructuring in December 2024 has positioned the company under new control, potentially enhancing synergies within the motorcycle sector [48] Brand Development - The launch of the VOGE brand in 2018 has allowed Longxin to penetrate the high-displacement motorcycle market, with a robust product lineup and competitive pricing [7][20] - The company has expanded its sales network significantly, with 990 domestic and 1,165 overseas sales points by the end of 2024 [7] Growth Outlook - The motorcycle market presents substantial growth potential, with the domestic high-displacement penetration rate expected to increase significantly [7][20] - Longxin's product matrix is set to benefit from the introduction of new models, with expectations for continued upward momentum in brand performance [7][20] Financial Forecast - Revenue projections for Longxin General indicate a growth trajectory, with expected revenues of 20.88 billion, 24.02 billion, and 26.42 billion yuan for 2025, 2026, and 2027 respectively [1] - Corresponding net profits are forecasted to reach 1.87 billion, 2.29 billion, and 2.57 billion yuan for the same years, reflecting a strong growth outlook [1]

1. Reported Industry Investment Rating - No information provided 2. Core View of the Report - The motorcycle industry in China shows steady growth, with intensified domestic competition and continuous growth in foreign exports. The trend of Chinese motorcycles going global is positive, and domestic motorcycle brands have greater structural opportunities in overseas markets than in total volume [24]. - The company aims to achieve revenue of over 19 billion yuan in 2025, and plans to conduct mid - term dividends in 2025 under eligible conditions [27]. - The company will work with its controlling shareholder to optimize supply chain management and enhance supply chain synergy to strengthen market competitiveness [28]. 3. Summary by Relevant Catalogs 3.1. Research Basic Situation - The research object is Loncin General, belonging to the transportation equipment industry. The reception time was May 20, 2025. The listed company's reception staff included the chairman, general manager, independent directors, board secretary, and financial controller [17]. 3.2. Detailed Research Institutions - The reception objects include investors and others [20]. 3.3. Research Institution Proportion - No information provided 3.4. Main Content Data - **Motorcycle Industry Development**: In 2024, China's fuel motorcycle sales reached 16.4562 million units, a year - on - year increase of 12.99%. Domestic sales were 8.9065 million units, a year - on - year decrease of 16.56%, and export sales were 11.0163 million units, a year - on - year increase of 26.72% [24]. - **Popular Products of Wujie**: SR250GT redefined the leisure sports scooter market; CU525 became the king of the same - level cruising motorcycles; DS900X had annual sales of over 10,000 units, accounting for over 95% of the total export volume of motorcycles above 800cc in China. New products such as CU250 and RR660S were also launched [24][25]. - **Reasons for Low Domestic Sales of Wujie 900DS**: The most popular product categories in the domestic market are cruising, sports, and scooter models. The domestic leisure and entertainment motorcycle market is still in the development stage, and the sales volume of large - displacement motorcycles is mainly concentrated in the 400 - 600cc range [26]. - **Business in the US and Risk Resistance**: The company's motorcycle exports are mainly to Europe, South America, and Africa. Exports to the US are mainly general machinery products, accounting for less than 7% of total revenue. The company will expand market share in multiple regions and take measures such as "going global in groups" with the supply chain and optimizing overseas manufacturing plant layouts [26]. - **Future Profit Growth Drivers**: The company will follow the strategic path of "product going global → brand going global → production capacity going global", increase the proportion of self - owned brand revenue, optimize the product sales structure, improve operational efficiency, and strengthen risk management [26]. - **2025 Business Plan**: The company will adhere to the business philosophy of "optimizing the existing and breaking through in the new", with a guiding ideology to promote high - quality and sustainable development, and strive to achieve revenue of over 19 billion yuan [26][27]. - **2025 Mid - term Dividend Consideration**: The company has proposed to the general meeting of shareholders to authorize the board of directors to formulate a mid - term dividend plan for 2025 and plans to conduct mid - term dividends under eligible conditions [27]. - **Competition and Supply Chain Integration**: The new controlling shareholder and actual controller of the company have promised to resolve the issue of competing businesses. The company will optimize supply chain management with the controlling shareholder to enhance supply chain synergy [28].