Guotai Haitong: Maintains "Overweight" rating on DAHON TECH (02543), target price HK$52.66

Guotai Haitong issued a research report stating that DAHON TECH (02543) has fast revenue growth, with online direct sales revenue as the core growth engine; its high-end product matrix is well-developed, its technical barriers are solid, and long-term growth space is opening up. Considering the company's recent operating conditions, the bank adjusted its earnings forecasts and expects the company's EPS for 2026-2028 to be RMB 3.23/4.15/5.52 (previously RMB 3.31/4.16 for 2026-2027). Referring to industry valuation levels, it assigns the company 15X PE for 2026, with a target price of HK$52.66 (exchange rate assumed at HK$1 = RMB 0.92), maintaining the "Overweight" rating. Guotai Haitong's main views are as follows: Fast revenue growth, with online direct sales revenue as the core growth engine In 2026H1, the company's operating revenue was RMB 490 million, up 53.7% YoY; among this, DAHON bicycle revenue reached RMB 482 million, up 54.1% YoY, accounting for 98.5%. By channel, online direct sales revenue was RMB 144 million, up 84.3% YoY; on the Tmall platform, it ranked first in payment amount in the folding bicycle category for 10 consecutive months, and on the JD platform, it ranked first in monthly transaction value for 18 consecutive months; offline channels improved in quality and expanded in capacity. In 2026H1, the company had more than 1,000 terminal stores, and offline distribution revenue was RMB 300 million, up 41.5% YoY. High-end product matrix well-developed, solid technical barriers, opening long-term growth space The main brand DAHON focuses on the high-end market, with the LUNDEN patented tri-fold bicycle and the PKA015 MUX racing bicycle supporting high gross margins; the sub-brand BICECO enters the mass market, covering all price bands and scenarios. The company continues to increase R&D investment. In 2026H1, R&D investment was RMB 13 million, up 31.5% YoY. It holds 175 valid patents, and its core technology "DAHON-V" system strengthens product differentiation and the industry moat. Gross margin improved, profit growth faster than revenue In 2026H1, the company's gross margin was 35.2%, up 1.7pct YoY. The gross margin increase was due to the good market response to the launch of the high-end LUNDEN tri-fold series, with the product mix continuing to upgrade toward high-end. The sales/administrative/financial expense ratios were 11.4%/5.4%/-0.2%, up 0.01/+0.6/-0.3pct YoY; the increase in the administrative expense ratio was mainly affected by increases in employee compensation, IBM strategic coaching, and professional service fees. In 2026H1, the company's net profit attributable to shareholders was RMB 67 million, up 72.3% YoY, with profit growth significantly faster than revenue, as brand premium and scale effects gradually emerged. Cash flow improved YoY, dividend payout significantly increased In 2026H1, net cash flow from operating activities was RMB 198 million, up 318.3% YoY. The company plans to distribute an interim dividend for 2026 of RMB 1.224 per share, totaling approximately RMB 40.134 million, with a dividend payout ratio as high as 60%, demonstrating strong profitability and a stable willingness to return cash. Risk warning Supply interruption or sharp price increases in raw materials, components, and finished products; new product development falling short of expectations.