Green Source Group (02451): The performance growth rate plummeted sharply, and the fundamentals are lacking.

Distance has passed more than five years since the implementation of the new national standard "Technical Specifications for the Safety of Electric Bicycles" in 2019, and the electric two-wheeler industry has already entered a mature development stage. Currently, the revision of the new national standard is imminent. Earlier, at the end of May, relevant departments issued the first amendment to the "Electrical Safety Requirements for Electric Bicycles", tightening key safety indicators and strengthening the coordination of related standards; last month, the Ministry of Commerce and four other departments released the "Implementation Plan for Promoting the Replacement of Old Electric Bicycles with New Ones", clearly supporting lead-acid battery two-wheelers and encouraging consumers to choose "white-listed" companies for replacement. A series of new policies are coming, coupled with the upcoming revision of the new national standard, which may herald a new round of reshuffling in the electric two-wheeler industry. As the mid-year reporting season for listed companies draws to a close, the financial reports of electric two-wheeler companies have been largely disclosed. By combining these financial reports, we can get a glimpse of the operating conditions and new development trends of representative companies in the industry. Taking the Green Source Group (02451) as an example, which will soon celebrate its first anniversary since going public, the company achieved revenues of 2.534 billion yuan in the first half of the year, a slight increase of 3.2% year-on-year; net profit was 65.988 million yuan, an increase of about 9.6% year-on-year. Although the core financial data continues to grow, it is noteworthy that Green Source's net profit margin is only 2.6%, indicating weak profitability. As a veteran player in the electric two-wheeler industry, the history of the Green Source brand can be traced back to the end of the last century. However, despite its leading market position, the Green Source Group seems to lack the ability to improve its profitability through economies of scale. With a "ceiling" on top and an uninspiring performance, this explains why the stock price of Green Source Group has been predominantly weak since going public, lacking upward trend opportunities. As of the close of September 10, the cumulative decline in the Green Source Group's stock price for the year has reached 11.68%. With profitability lacking, the company's fundamental strength is insufficient Since the surge in demand generated by the 2019 new national standard gradually subsided, the domestic electric two-wheeler industry has transitioned back into a stage of competitive equilibrium. From a micro perspective, the changes in Green Source Group's performance over the past few years reflect this trend. Data shows that between 2020 and 2022, Green Source Group's operating income increased from 2.378 billion yuan to 4.783 billion yuan, with a compound annual growth rate of approximately 41.81% during that period; net profit increased from 40 million yuan to 118 million yuan, with a compound annual growth rate of approximately 71.18% during the same period. It is understood that during this period, the G...It is doubtful whether consumers will foot the bill; even if, taking a step back, the increased capacity of green sources is eventually absorbed by the market as desired, it will likely be another major test for the company to maintain its already very modest profits.l est durmiendo en su cama.