Introduction to this report:

Chunfeng's major annual event, Chunfeng Day released a number of new cars. The price of the 500SR, the first model with a new four-cylinder platform, was released. The 250 double cylinder and 675 three-cylinder were unveiled. Many new platform models are ready to go, and the product matrix continues to be enriched.

Key points of investment:

The target price was maintained at $189.13, and the increase in holdings rating was maintained. Maintain the company's 2024-2026 EPS forecast of 8.29/10.41/12.65 yuan, maintain the target price of 189.13 yuan, corresponding to 23 times PE in 2024, and maintain the shareholding increase rating.

Spring Breeze Day was grandly held, and the 500SR, the first model on the new four-cylinder platform, was released and launched. Spring Breeze Day was held on July 13, which attracted the participation of more than 2,000 motorcyclists. The event was rich in content, and dealers, suppliers, and car owners gathered. Spring Breeze Day announced the price of the four-cylinder replica 500SR VOOM. The standard version sold for 34,980 yuan, and the high version sold for 37,980 yuan. The price exceeded expectations.

The 500SR VOOM has a novel appearance, boldly incorporates retro elements into the race-like model, and has clearly differentiated visual effects from other competitors. The sales volume is worth looking forward to after launch.

A number of new platforms are poised to launch, and the two-round product matrix continues to be enriched. This Spring Breeze Day unveiled a three-cylinder imitation 675SR real car, a two-cylinder 250SR-R, which heralded a public upgrade supercar. The new power platform continues to be enriched, multiple displacement segments have been added, and the product matrix has been continuously improved. Similar to racing models, the company's long board will be strengthened, and a solid model foundation will be laid for next year and beyond.

Exports were compounded by the upgrading of the product structure, and the company's profit increased sharply. Independent brands are going overseas at an accelerated pace, export demand remains high, and the company continues to benefit. The product structure has been upgraded to further enhance the company's brand competitiveness. Under the resonance of domestic and foreign markets, the new product cycle continues to be realized. With export superimposed product structure upgrades and continuous optimization of profitability, the company is expected to achieve a sharp rise in quantitative profit.

Risk warning: New car sales fall short of expectations, trade policy risk, exchange rate fluctuation risk.