24Q2 实现营收44.68 亿元，同比+23.2%；归母净利润为4.31 亿元，同比+26.35%；销售毛利率为30.82%，同比-0.52PCT，环比-1.7PCT；销售净利率为10.09%，同比+0.17PCT，环比+0.58PCT。Brief performance review
On August 15, the company disclosed its 24-year report:
24H1 achieved revenue of 7.529 billion yuan, +15.73% year over year; net profit to mother was 0.709 billion yuan, +28.49% year over year; gross sales margin was 31.51%, -1.07PCT year on year; and net sales margin was 9.85%, +0.99PCT year on year.
24Q2 achieved revenue of 4.468 billion yuan, +23.2% year over year; net profit to mother was 0.431 billion yuan, +26.35% year over year; gross sales margin was 30.82%, -0.52 PCT year on year, -1.7 PCT month on month; net sales margin was 10.09%, +0.17 PCT year on year, +0.58 PCT month on month.
Management analysis
1. Profit slightly exceeded expectations, mainly due to the increase in exchange earnings.
2. The split is as follows:
(1) Revenue: In the first half of the year, (1) all-terrain vehicles were sold at 0.0814 million units, with revenue of 3.532 billion yuan, or -1.55%; (2) two-wheelers sold 0.1539 million units, with revenue of 3.248 billion yuan, or +41.95% year-on-year. The market share of high-displacement motorcycles reached the top.
(2) Gross profit margin: Gross margin declined in the second quarter compared to the same period, mainly due to the restructuring of four-wheeler products and the reduction in two-wheeler prices. The main driving models this year were the X8 and X10, which were both ATVs. The gross margin level is about 10 PCT lower than the SxS, but it is expected that the company will launch several SxS in the third quarter, which in turn will drive a recovery in gross margin.
(3) Expense rate: The four-wheeler inventory level in the second quarter returned to normal levels after sales promotion in the previous few quarters, so promotion expenses and sales expense rates declined. Sales/management/finance/R&D expenses in 24Q2 were 9.21%/10.7%/-1.74%/6.03%, year-on-year, -1.77PCT/+0.86PCT/+1.44PCT/+0.33PCT, and -1.19PCT/-0.7PCT/-0.41PCT/ -0.13PCT year-on-month.
(4) Others: 1) Exchange gains and losses still achieved relatively rapid growth under a high base. 24H1 was 68.1 million yuan, +50% year-on-year; 2) 24Q2 other comprehensive income was -0.1 billion yuan, mainly due to the continuous decline in KTM's stock price in the second quarter.
Profit Forecasts, Valuations, and Ratings
The company's performance exceeded expectations, and the two rounds of domestic sales growth exceeded expectations at the beginning of the year, and the four-round new platform is expected to continue to gain strength next year. Therefore, we raised our 24-26 profit forecast and raised 0.05/0.23/0.18 billion yuan respectively. We expect 24-26 revenue to 14.956/17.523/20.417 billion yuan, and net profit to mother of 1.301/1.711/2.054 billion yuan. The corresponding PE for 2024/2025 is 16/12 times that of the company. Leading the way and maintaining a “buy” rating.
Risk warning
Risk of increasing US tariffs, risk of rising sea freight rates, risk of new product promotion falling short of expectations
