Jinwu Financial News | China Merchants released an update report on the two-wheeled vehicle Industry, reviewing 2024: 1) As a policy transition year after a year of price wars, the industry's fundamentals are weak in 2024. 2) In terms of stock prices, after experiencing two upward policy expectation catalyzes, the stock prices at the end of the year revert from policy expectations back to short-term fundamentals.

The bank indicated that the old-for-new exchange blockage has been cleared, and better results are expected in 2025. 1) In 2024, the old-for-new exchange showed better year-end effects than during the peak season, mainly due to earlier label adjustments and complex processes, along with high requirements for returning old products; after November, the standard switching was completed along with optimized exchange processes and relaxed conditions, leading to better effects in the old-for-new exchange. 2) The old-for-new exchange blockage exposed this year has been cleared, the exchange model at the dealer end has generally run smoothly, and combined with clearer policy rhythms next year, the old-for-new exchange effects in 2025 are expected to be fully released. Leading companies are likely to benefit more from the old-for-new exchange by acquiring more designated stores, having stronger financial strength, and more compliant Operations.

Looking ahead to next year, the bank is Bullish on the optimization from the new national standard revision representing the supply side and the expected new round of demand stimulation from the old-for-new exchange as the two main lines, leading to an optimization of the industry structure and a boost in demand, maintaining the industry 'recommend' rating, with a focus on recommending YADEA (01585) and Aima Technology, Bullish on the resonance of α and β for leading companies.