Investment Rating - The report maintains a "Buy" rating for Huayang Racing (834058 BJ) [1] Core Views - Huayang Racing's revenue in 2024H1 reached 259 million yuan (+17%), with net profit attributable to shareholders of 31 72 million yuan (+12%) and non-GAAP net profit of 31 13 million yuan (+48%) [4] - The company's gross margin increased year-on-year, driven by strong sales in the Russian market [4] - The report forecasts net profit attributable to shareholders of 66 million yuan, 82 million yuan, and 102 million yuan for 2024-2026, with EPS of 1 18 yuan, 1 46 yuan, and 1 83 yuan per share, respectively [4] - The current PE ratios for 2024-2026 are 13 3x, 10 7x, and 8 6x, reflecting optimism about the company's overseas business recovery and capacity expansion [4] Business Overview - Huayang Racing specializes in off-road motorcycles and all-terrain vehicles (ATVs), with five product series: Pit Bike, Dirt Bike, Mini Gp, ATV, and SSV [4] - The company has been expanding its presence in the Russian market since 2023, leveraging geopolitical changes [4] - In 2024H1, the company established a subsidiary, Huarui Kinetic, focusing on new energy power systems, including power batteries, motors, and controllers [6] Market Trends - China's motorcycle exports in July 2024 reached 3 66 million units (+48%), with export value of 1 37 billion USD (+29%) [5] - Exports to Russia surged by 91% in 2023, driven by geopolitical factors, and the Belt and Road markets are expected to further boost China's motorcycle exports [5] - The global ATV market saw a decline in 2022, with sales of 930,000 units (-10 6%), but UTV products accounted for 61% of the market, showing steady growth [12][13] Competitive Landscape - Huayang Racing holds an 8 5% global market share in non-road motorcycles and a 17 6% share in ATVs [37] - Key competitors include CFMOTO, Taotao Vehicles, and Polaris Industries, with CFMOTO leading in ATV exports, accounting for 74 28% of China's total export value [35] - Huayang Racing's gross margin for two-wheel motorcycles is comparable to CFMOTO, but CFMOTO has a higher gross margin in four-wheel vehicles (39 52% vs 20 42% in 2023) [46][47] Strategic Advantages - Huayang Racing has accumulated 82 patents by the end of 2023, with core technologies in lightweight and high-strength frame design, efficient transmission systems, and precise vehicle performance tuning [48][49] - The company has built a strong brand, KAYO, which is recognized internationally, and has established a robust sales network across over 50 countries [53][57] - The company has invested in intelligent manufacturing, including automated welding robots and laser cutting workstations, to enhance production precision and efficiency [66] Future Outlook - Huayang Racing is actively expanding into new energy power systems, with its subsidiary Huarui Kinetic focusing on power batteries, motors, and controllers [66] - The company's "Sports Motorcycle Intelligent Manufacturing Project" has reached 75% of its planned investment as of 2024H1, with a total capacity target of 600,000 units per year after expansion [68][69] - The report expects the company to benefit from the recovery of overseas markets, particularly in Russia and Belt and Road countries, as well as the release of new products like electric off-road motorcycles [71]
华洋赛车：北交所公司深度报告：海外市场多边发力，新能源布局及募投达产助力Kayo出海“乘风”