CMSC International: First to give DAHON TECH (02543) a "Buy" rating with a target price of HK$56.

The international research report released by CMSC stated that the initial target price for DAHON TECH (02543) is 56 Hong Kong dollars, with a rating of "Buy". The bank predicts a compound annual growth rate of 50% in sales from 2024 to 2027, with gross profit margin increasing by approximately 100 basis points each year. The main driving factors include: the launch of new products such as folding and electric assist bikes driving up ASP, an increase in self-produced repairs by 200-300 basis points in profit margin, and an online channel ratio expected to increase to about 35% in 2026, with a gross profit margin of around 50%, significantly higher than the offline margin of 27-28%. The bank predicts accelerated revenue growth in the second half of 2025, with a growth of approximately 50% in the third quarter and online sales in October increasing by over 85%. The target for overseas business is 150 million yuan in revenue by 2026 and 300 million yuan by 2027, with a regional structure conducive to profit margin improvement, as electric assist penetration in the European and American markets is expected to reach 20-30%, while China remains below 5%. The bank stated that four major catalysts will be released in 2026: 1) High-end product lines have been officially implemented, with folding bike models priced at 5000-7000 yuan and officially launched in the fourth quarter of 2025. 2) Self-production increasing gross profit margin by 200-300 basis points. 3) Transformation to online channels, maintaining over 50% growth with a gross profit margin of around 50%, compared to only 27-28% for offline channels. It is expected that online revenue will reach 35% by 2026 (compared to about 25% in 2024). 4) Further expansion into international markets.