Huatai Securities maintained a "Buy" rating for YADEA (01585.HK) due to the company's expected significant growth in net profit, projected to reach no less than RMB2.9 billion in 2025, which represents a year-over-year increase of over 128%. This growth is primarily attributed to an increase in electric two-wheeler sales and optimization of the product structure. Despite lowering the 2025 net profit forecast to RMB2.94 billion due to anticipated impacts from the transition between old and new national standards on sales in the fourth quarter of 2025, the broker remains optimistic about YADEA's ability to consolidate its leading position in the two-wheeler market. Additionally, Huatai Securities maintained its forecasts for 2026 and 2027 net profits, indicating a strong compound annual growth rate (CAGR) of 44.4%.
