Events:
Taotao Automobile Industry announced on October 27, 2023: the company's operating income in the third quarter was 562 million yuan, an increase of 30.42% over the same period last year, and 11.81% in the first three quarters compared with the same period last year. The net profit returned to its mother was 70 million yuan, an increase of 78.96% over the same period last year, and 49.96% in the first three quarters.
Main points of investment:
The company's main business profile: Taotao Automobile Industry focuses on the national specialized special small giant enterprise of "new energy intelligent travel", focusing on intelligent electric low-speed vehicles and special vehicles, intelligent electric low-speed vehicles include new energy intelligence products such as electric scooters, electric balance cars, electric bicycles, electric golf carts, and special vehicles include fuel products such as all-terrain vehicles and off-road motorcycles. The company's products are mainly used for leisure sports, intelligent travel, special operations and other aspects, suitable for all ages and multi-scene use, to meet the needs of single, double, multi-person and the whole family, with a wide range of applications. Continuous commitment to provide global consumers with "unlimited outdoor driving experience".
The company has five core competitiveness 1, omni-channel marketing advantages, the company through large chain stores super (WALMART, TARGET, ACADEMY, BestBuy), online channels (Amazon.Com Inc, Walmart Inc, EBAY and other e-commerce platforms as well as its own sales channels), wholesalers, retailers, distributors and other construction of omni-channel marketing network. 2. The advantage of its own brand, the company has three main brands, and the sales of its own brand accounts for nearly 60% by January to June 2023. The vigorous construction and development of its own brand has enabled the company to break through the limitation that orders are controlled by a third party under the "ODM and OEM" mode. 3. Deeply ploughing the advantages of localization operation in North America for many years, the company has set up an international and professional operation team of more than 100 people in the United States and Canada, and has rich localization operation ability and practical experience. 4. with the advantage of transnational collaborative R & D system, the company has set up R & D centers in the United States and China respectively to enhance the ability of innovation. 5, the advantage of cost control, the self-control rate of the company's core components is as high as 70%, which is conducive to controlling the quality of vehicle products and reducing production costs.
With the effective expansion of new categories, electric bicycles and electric golf carts have become a new category launched by incremental companies. In the first half of 2023, electric bicycle products reached 59.9252 million yuan, accounting for 7.64% of business income; electric golf carts achieved sales revenue of 28.4924 million yuan, accounting for 3.63% of business income. 500ATV and UTV have completed their research and development and will enter small batch trial production one after another, and the rest of the larger-displacement all-terrain vehicle projects are also moving forward in an orderly manner as planned. We expect that after these new categories are promoted in the future, they are expected to become a new revenue growth point for the company.
The profit forecast and investment rating companies performed well in the first three quarters of 2023. We estimate that the total revenue of the company from 2023 to 2025 is 2.030cm 2.440x2.825 million, and the net profit returned to the parent is 2.94x353808 million, respectively. The corresponding diluted EPS is 2.693.233.73 yuan, and the corresponding PE is 18.5915.45x13.39X. The company's new category expansion, superimposed channel advantages, optimistic about the company's long-term development, coverage for the first time, given a "buy" rating.
Risk suggests overseas market volatility risk; company management risk; industry competition intensification risk; exchange rate fluctuation risk; market volatility, valuation center decline risk; small market capitalization company secondary market share price volatility and liquidity risk.