Golf carts in the United States have become more popular after the epidemic, and Chinese enterprises have exported ODM models. The United States is the world's largest golf market. According to MordorIntel l igence, sales of the global golf cart market are forecast to grow at a compound annual growth rate of 5.52% from 2021 to 2027, representing a steady growth. With the advantages of advanced technology and high performance-to-price ratio, ICON, the first overseas customer of Lvtong Technology, has rapidly grown into the fourth largest golf cart brand in the United States, competing with the three major international brands. In recent years, the export scale of China's field electric vehicles has been expanding. In 2022, the export scale of China's field electric vehicles was 181800, an increase of 55% over the same period last year.
The road to the rise of Lutong technology: ODM mode export, binding to American customers. The sales model is mainly ODM, with ODM revenue accounting for 83.7% in 2022; the export volume reached 54000, accounting for 29.69% of China's field electric vehicle exports in that year. Deep ploughing the overseas market, mainly in North America, the proportion of overseas revenue will be 92.38% in 2022. On the R & D side, Lutong Technology holds 38 patents and takes the lead in using the second generation AC asynchronous drive technology and the third generation AC permanent magnet synchronous drive technology in China to realize the domestic replacement of the controller. In terms of production capacity, the company will produce 58300 units in 2022. Lutong Technology will expand its production capacity by 17000 through fund-raising plans to match the growth in overseas demand and give full play to its scale advantage. Profitability has improved steadily, and the company's comprehensive gross profit margin has risen steadily, from 24.6% in 2021 to 32.97% in 2023.
The company is expected to continue to benefit in the future: 1) Channel sales, the company deeply bound with the American cutting-edge brand ICON, signed a medium-and long-term sales framework agreement; ICON with advanced product technology, cost-effective advantages, rapidly growing into the fourth largest golf cart brand in the United States, is expected to further increase market share. 2) for production and products, the company is expected to match overseas market demand by expanding production capacity, on the other hand, by reducing costs and increasing efficiency by combining special golf production lines and introducing intelligent production equipment, so as to further shorten the R & D cycle and enhance product competitiveness. expand users and increase market share. 3) New growth point, Al l ied Market Research expects the global electric UTV market to grow at a compound annual growth rate of 11.4% from 2022 to 2031, with broad prospects; the company's electric UTV model has been developed, and combined with the company's mature overseas sales channels, it is expected to become a new growth point in the future.
Investment advice and profit forecast: we estimate that the company's revenue from 2023 to 2025 will be 12.20 PE 15.04 / 1.8 billion yuan, the net profit attributable to the parent will be 2.94max 3.58 / 433 million yuan, the corresponding diluted PE will be 2.80 pm 3.41 pm 4.12 yuan, and the corresponding PE will be 16.89max 13.86 shock 11.46X respectively. Optimistic about the steady growth of the golf cart market, the company, as the industry leader, has a leading advantage in research and development, channels and production capacity, covering for the first time and giving "overweight" rating.
Risk tips: the company's performance is lower than expected risk; overseas income depends on risk; overseas market expansion is less than expected risk; rely on major customer risk; industry competition pattern deterioration risk; supply chain price risk; exchange rate risk; small market capitalization company stock price volatility risk.