occurrences
On February 4, 2024, the company issued a share repurchase plan announcing investment points
It is proposed to repurchase shares of 50 million to 100 million yuan, demonstrating the company's development confidence. According to the announcement, the company plans to use its own capital of 50 million (inclusive) to 100 million yuan (inclusive) to repurchase shares for future equity incentives. The repurchase price is no more than RMB 87.35 per share. Based on the maximum repurchase amount of RMB 10,000 million and the maximum repurchase price of 87.35 yuan/share, the number of shares repurchased was approximately 1,144,820 shares, accounting for approximately 1.05% of the company's total share capital. Based on the minimum repurchase amount of RMB 50 million and the upper limit of the repurchase price of 87.35 yuan/share, the number of repurchases was about 572,410 shares, accounting for about 0.52% of the company's total share capital. This buyback reflects firm confidence in the company's future development and recognition of the company's values.
North American recreational vehicle leaders, electric low-speed vehicles and other new product sales have set a second curve. The company is the leading North American recreational vehicle company, which has the dual advantage of “North American brand+made in China”, and opened up a second growth curve for new products such as electric low-speed vehicles. New products such as electric golf carts, electric bicycles, and high-displacement all-terrain vehicles are being released.
Electric golf carts: The company's own DENAGO brand products were recognized and praised by many participants at the world's top golf PGA exhibition. At present, it has expanded to more than 60 high-end dealers and reached cooperation agreements with many leading dealers in the US; at the same time, it has settled in more than 300 stores in TSC supermarkets, and plans to expand to more than 1,000 stores in the future.
High-displacement all-terrain vehicle: In 2024, the company's high-displacement all-terrain vehicle, the 300ATV, has obtained EU T3B certification, and in-hand orders have been produced and shipped, and will mainly enter the European market; the 550 UTV has obtained EPA certification and will enter the US market; the small-displacement all-terrain vehicle is scheduled to enter the North American high-end dealer network in 2024.
Electric bicycles: The dual-brand multi-channel strategy has deployed more than 300 high-end dealers, and has entered large supermarkets such as Walmart, Target, Bestbuy, Academy, and Kohl's. The product ranked high in the e-bike category on Amazon in North America.
Accelerate the construction of overseas production bases, and the new and old categories are expected to resonate in 2024. The Vietnamese factory is progressing at an accelerated pace: production is scheduled to be put into operation around June 2024, which will further enhance the company's manufacturing capabilities. The Vietnamese factory is mainly responsible for the production and sale of products and accessories such as special vehicles and electric low-speed vehicles, including small-displacement all-terrain vehicles sold to the US market. US factory: At present, electric golf cart products have begun to be organized in small quantities in the US factory.
The company was doing well in 2023. We expect the company's performance to continue to improve in the first quarter and full year of 2024 as new and old businesses work together. The company's original products, such as small-displacement all-terrain vehicles, off-road motorcycles, electric scooters, etc. are expected to maintain steady growth with channel optimization, category expansion and product upgrades. New products such as electric bicycles, electric golf carts, and high-displacement all-terrain vehicles will bring a second curve as new products are released.
Profit forecasting and valuation
We expect the company's revenue in 2023-2025 to be 21.5, 29.01 billion yuan, and 3.94 billion yuan, up 22%, 36%, and 35%; net profit to mother will be 2.9, 330, and 450 million, up 38%, 14%, and 38% year-on-year, corresponding PE 18, 15, and 11 times. I am optimistic that the company will accelerate performance growth and maintain a “buy” rating due to new product sales and channel advantages.
Risk warning: 1) New product release falls short of expectations; 2) Sales channel expansion falls short of expectations