Recreational Vehicles Going Overseas Research Report [Industrial Securities

Between 2017 and 2022, the company's revenue grew from $490 million to $1.77 billion, a CAGR of 29.4%, the report noted.

The report analyzes the main business and new business of Tao Tao Automotive. In terms of the main business, small-displacement all-terrain vehicles (ATVs) are expected to benefit from industry growth due to their cost-effective performance; the electric scooter market is highly concentrated, and the company's product matrix is constantly improving, and the business is expected to expand; the electric balance bike industry is in the early stage of growth, and the company's products are cost-effective and youthful, and market share is expected to increase. In terms of new business, the company is actively laying out large-displacement ATVs and UTVs, and adopting dual-brand operation for electric bicycles, which has established a good reputation in North America; the market for electric golf carts is monopolized by foreign oligopolies, and the company is expected to achieve growth through synergies.

The cost advantage and operational advantage of Tao Tao Automobile is its core competitiveness. The company is located in zhejiang "yongwujin" hardware industry cluster belt, industrial clustering reduces the procurement and warehousing costs. At the same time, the company's core parts and components self-produced and self-research, accessories self-produced rate as high as 70% or more, effectively controlling the cost. Operationally, the company has built an omni-channel network covering large supermarket chains, e-commerce platforms, wholesalers, retailers and distributors, etc. Through multi-brand layout and localized operation, the company has improved its brand bargaining power and market response speed.

The report forecasts that from 2023 to 2025, the company's revenue will be 2.125 billion yuan, 2.774 billion yuan and 3.626 billion yuan, respectively, and net profit will be 281 million yuan, 345 million yuan and 444 million yuan, respectively. Based on the closing price on March 8, the corresponding dynamic P/E ratios are 21.2, 17.2 and 13.4, etc. The report also suggests risks, including a sharp rise in the price of raw materials, the expansion of new channels is less than expected and exchange rate risk.

The report also provides detailed financial data and ratio analysis showing the company's financial position and profitability. In addition, the report is accompanied by the company's financial statements and key financial ratios, as well as analysts' statements and investment rating notes, providing investors with comprehensive reference information.