Event: The company announced a pre-increase in 2023 results
The company expects to achieve net profit attributable to shareholders of listed companies of 960 million yuan to 1,060 million yuan for the full year of '23, an increase of 36.88% to 51.13% over the previous year;
Net profit after deduction was 924 million yuan to 1,024 million yuan, an increase of 15.97% to 28.52% over the previous year.
Performance growth is excellent, and the product structure continues to be optimized. According to the Association's data, the company sold 76,000 motorcycles with a displacement of > 250 ml in 23 years, an increase of 35% over the previous year. The company's high-displacement motorcycles of 250ml or more are growing rapidly. While the brand power continues to improve, the sales share of high-value-added products has increased, promoting the continuous optimization of the company's product structure. At the same time, the company has strengthened production efficiency and cost management, and comprehensive costs have been steadily reduced, further improving profit levels.
The global layout is progressing steadily, and economies of scale have been further enhanced. Since 2023, the company has continued to promote a global layout, and has established a “one core, two sales, three combinations” marketing model with the factory headquarters as the core, domestic and export sales, combined sales and service, direct sales, and online and offline sales, and vigorously expand new markets.
The company's mid-year report mentioned that as of mid-'23, the company had more than 4,000 distribution outlets in the international market; the domestic market had more than 650 “CFMOTO” distribution outlets, 38 “KTMR2R” distribution outlets, and more than 200 “ZEEHO” distribution outlets. As the market share of the company's products continues to expand, economies of scale are expected to be further enhanced.
Affected by the appreciation of the exchange rate of the US dollar against the RMB and the fall in international shipping costs, the company's profits were further released. The company's export products are mainly settled in US dollars. 2023 was affected by the appreciation of the exchange rate of the US dollar against the RMB. Combined, international shipping costs fell significantly compared to the same period last year, and the company's profits were further released. According to the company's forecast disclosure, the impact of non-recurring profit and loss was about -35.810.7 million yuan, mainly due to matters such as receiving government subsidies during the current period.
The company has clear barriers, a stable position in overseas markets, and maintains a “highly recommended” investment rating. We expect the company's revenue for 23-25 to be 12 billion yuan, 15.11 billion yuan, 19.5 billion yuan, and net profit to mother of 1 billion yuan, 1.28 billion yuan, and 1.79 billion yuan, corresponding to the current market capitalization PE of 12.9 times, 10.1 times, and 7.2 times, maintaining a “highly recommended” investment rating.
Risk warning: weak overseas demand, depreciation of the US dollar against the RMB exchange rate, economic recession, etc.