Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 20.13 [1]. Core Insights - The company reported a Q3 revenue of RMB 4.805 billion, representing a year-over-year increase of 5.55% but a quarter-over-quarter decrease of 5.89%. The net profit attributable to the parent company was RMB 500 million, showing a significant year-over-year increase of 62.48% but a quarter-over-quarter decline of 11.41% [1]. - The company's brand, "Wuji," is driving a strategic shift from low-end OEM to self-owned mid-to-high-end products, enhancing its export capabilities and profitability [1]. - The company has expanded its global footprint in three-wheeled vehicles, achieving coverage in key regions of West, East, and North Africa, and successfully entering Central and West Asia [2]. Revenue Performance - In Q3, the company experienced a slight decline in revenue compared to the previous quarter, attributed to adjustments in its OEM business share. However, sales of its self-branded products continued to grow, with a 24% year-over-year increase in sales of 250cc+ motorcycles, totaling 40,000 units. Export sales of 250cc+ motorcycles surged by 73% year-over-year, exceeding 20,000 units [2]. - The company also reported a 79.5% year-over-year increase in three-wheeled vehicle exports, reaching 45,000 units in Q3 [2]. Profitability Metrics - The gross margin for Q3 improved by 1.15 percentage points year-over-year to 18.8%, driven by an increase in the sales proportion of self-owned brands. The net profit margin for Q3 rose to 10.4%, reflecting a 3.7 percentage point increase year-over-year [3]. - The company maintained low operating expense ratios, with sales expense ratio at 1.24%, management expense ratio at 2.4%, and R&D expense ratio at 2.0% [3]. Brand Development - The "Wuji" brand continues to expand its product lineup, becoming a key driver of revenue growth. The company is launching high-performance and personalized strategic new products in the domestic market while solidifying its leading position in the overseas market with self-developed mid-to-large displacement models [4]. Profit Forecast and Valuation - The company is projected to achieve net profits of RMB 1.898 billion, RMB 2.356 billion, and RMB 2.846 billion for the years 2025 to 2027, respectively, with a compound annual growth rate of 36.41%. The expected EPS for these years is RMB 0.92, RMB 1.15, and RMB 1.39 [5]. - The target price is based on a PE ratio of 17.5x for 2026, resulting in a target price of RMB 20.13, adjusted from a previous value of RMB 21.71 [5].

Group 1 - The core viewpoint of the report indicates that Longxin General achieved a net profit attributable to shareholders of 1.074 billion yuan in the first half of the year, representing a year-on-year increase of 82.26% [1] - In Q2, the net profit attributable to shareholders was 567 million yuan, showing a year-on-year growth of 70.99% and a quarter-on-quarter increase of 11.93% [1] - The sales revenue from the self-owned brand Wujie series products reached 1.98 billion yuan in the first half of 2025, marking a year-on-year growth of 30.23% [1] Group 2 - Export sales revenue amounted to 1.19 billion yuan, reflecting a significant year-on-year increase of 83.31% [1] - The company launched new models in overseas markets, focusing on travel and scooter models, including DS625X, DS800XRally, and SR16 [1] - Longxin has established a total of 1,292 overseas sales outlets, with a strong focus on the European market, where the number of outlets has reached 957 [1] Group 3 - In the three-wheeler segment, sales revenue reached 879 million yuan, showing a year-on-year increase of 38.68%, with domestic sales contributing 390 million yuan, up by 4.55% [1] - The company is optimistic about its overseas expansion and has raised its profit forecast for 2025-2027, expecting net profits of 1.906 billion, 2.307 billion, and 2.713 billion yuan respectively [1] - The previous profit estimates were 1.805 billion, 2.116 billion, and 2.425 billion yuan [1]

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]