Guotai Haitong: "Buy" rating on DAHON TECH (02543) with a target price of 76.57 Hong Kong dollars.

Guotai Haitong released a research report stating that considering DAHON TECH (02543) is in the high prosperity track of folding bicycles, it belongs to a highly prominent growth segment in the two-wheeled travel track. With the improvement of the company's product matrix and channel expansion, they are rated as "hold" with a target price of 76.57 Hong Kong dollars. The company is forecasted to have revenues of 676 million, 886 million, and 1.111 billion yuan respectively for the years 2025-2027, with corresponding net profits attributable to the mother of 79 million, 105 million, and 132 million yuan, representing year-on-year growth of 50.7%, 32.9%, and 25.8%. EPS are projected to be 2.49, 3.31, and 4.16 yuan respectively. The company's core competitiveness is reflected in three aspects: first, diversified channel layout, with domestic offline distribution as the main channel (accounting for 68.2% of revenue in 2024, up 45.2% year-on-year), with a wide coverage of dealerships and establishing a solid customer base; domestic online direct sales have faster growth, with revenue increasing by 72.5% in 2024 to 100 million yuan; the proportions of domestic offline direct sales and overseas sales in 2024 were 3.0% and 6.6% respectively. Second, a comprehensive product matrix covering urban commuting, outdoor exploration, fashion and personality, extraordinary speed, and practical content in five major categories and all price ranges. The high-end/mid-range/mass market prices are each 5000 yuan, 2500-5000 yuan, and <2500 yuan per vehicle. Mid-range models are dominant, accounting for nearly 70% of revenue in 2024, with an average price of 2130 yuan and sales exceeding 140,000 vehicles. Third, outstanding research and development capabilities, with a total of 135 patents at home and abroad as of April 2025, and invited to participate in the formulation of the "China Bicycle Safety National Standard" (GB/T3565.4-2022).