Citigroup maintains a "buy" rating on YADEA (01585) with a target price raised to HK$16.1.

Citibank released a research report stating that after holding a conference call with YADEA (01585) management, it has raised the company's net profit forecast for the next two years by 20% and 18%. The target price has been raised from 15.2 Hong Kong dollars to 16.1 Hong Kong dollars, maintaining a "buy" rating. The report quoted YADEA as saying that the company is confident in meeting the new national standards for its products, benefiting from research and development to reduce the weight of lead-acid batteries. It is expected that new products will begin testing in May and be launched for sale by the end of August, with sales expected to be unaffected by the new regulations taking effect. YADEA also mentioned that the affected vehicles are large electric motorcycles that use a large number of plastic components. It is estimated that distributors will promote sales before the new regulations take effect, but the impact of early purchases will be limited.