Incident: Yadi invests in the construction of a factory in Mexico, equipped with advanced technology independently developed by Yadi, including long battery life systems and intelligent safety systems. The local Mexican government participated in hosting the first car launch conference. Zhang Liang, general manager of Yadi's North American market, said, “Mexico is not only a key production center, but also a launching pad for our broader regional strategy. We have full confidence in the strength and potential of the Mexican and Latin American markets as a whole.” Industry side: Domestic policy dividends continue to be released, and overseas layout in Latin America opens a new chapter 1) Overseas: Demand for two-wheelers is strong in Latin American markets such as Mexico. According to customs data, in 2024, China alone exported 9.3 billion yuan (+47%) of motorcycles to Mexico, with an export volume of 3.01 million units (+58%); of these, electric vehicles amounted to 1 billion yuan (+126%), and the export volume was 0.82 million units (+157%).
2) Domestic:
① The trade-in process has been simplified and subsidies have been strengthened, and the boom in the industry continues. Continued and strengthened in 2025, the average subsidy in many places was 500-1000 yuan, and the process was simplified. Since March, it has shown an accelerated catalytic trend. As of May 20, the number of electric bicycle replacements since the beginning of the year has exceeded 6 million, driving new car sales of 17.82 billion yuan and 0.079 million stores to participate. The stimulating effect is remarkable. The trade-in policy is clearly differentiated in consumer support. As a leading company, Yadi has a higher level of store participation, which is expected to attract more customers and drive an increase in share.
② The new national standard is about to be implemented, which is expected to increase the share of leading players. The 2025 new national standard policy requires enterprises to have vehicle production capacity and raise the entry threshold, which will drive further concentration of industry share. As a leading enterprise with strong compliance, quick response, wide channels, and excellent overall performance, Yadi is expected to gain share at an accelerated pace.
Company side: three-dimensional barriers between products, brands, and channels, leading the future overseas 1) Increased overseas production capacity and follow-up of after-sales systems: Yadi's factory chose to land in Mexico. This state is an important logistics hub, and the company aims to target the vast Latin American market. Establishing a local base helps the company directly control pricing power, after-sales service and distribution network development, and improve market response efficiency. Up to now, Yadi has opened 15 stores in Mexico since November 2024, covering all important Mexican markets, and the number of stores can be expected to increase.
2) High-end product position: Since the beginning of 2025, the company promoted intensive new activities, and implemented a parallel strategy of high-end and segmentation. In January, the company launched three sodium electric models, including the Guanneng Q50. In February, the Modern Series had accurate card positions for female customers. The new product was an explosion, driving the overall ASP and profit level upward. In addition, the company will release a new Guanneng S series product on May 26th.
3) Brand rejuvenation breaks the circle: Wang Hedi was signed as the brand ambassador and appeared frequently in “Let's Run”, and collaborated with platforms such as Xiaohongshu to create the image of “young women travel freely” and increase the proportion of young customers.
4) Refined channel operation: In 2025, the company will focus on single-store profit optimization, from simply expanding channels to store efficiency, strengthening store shopping guide training, resource investment, and proportion of flagship models to promote qualitative endogenous growth.
Profit forecast and valuation: Resonance between policy and alpha, high-quality growth drives DoubleClick to be the leading electric two-wheeler track brand. The company's revenue is expected to be 41.307/49.77/56.923 billion yuan in 2025-2027, up 46.3%/20.5%/14.4% year on year, and net profit to mother of 3.207/3.808/4.377 billion yuan, up 152.0%/18.7%/14.9% year on year. The price-earnings ratio corresponding to the current market value is 11.5/9.6/8.4 X. The company will maintain high-quality growth under the joint drive of the following three aspects: (1) the new national standard sets a competitive threshold, and trade-in boosts industry prosperity; (2) products continue to be high-end and the leading style is evident; (3) overseas “electrification” is determined to open up the blue ocean market. We believe that as the leading two-wheeler brand, Yadi Holdings' high-quality growth will drive the company's dynamic price-earnings ratio back to 20X and maintain a “buy” rating.
Risk Alerts
Industry market demand falls short of expectations; overseas market development falls short of expectations.
