Guoyuan International released a research report maintaining a "Buy" rating on YADEA Group Holdings Ltd. (01585) with a target price of HK$16.43 per share. The report forecasts a substantial increase of over 128% in YADEA's net profit for 2025, primarily driven by rising sales of electric two-wheelers and an optimized product mix with higher value-added offerings. Following the formal implementation of the new national standard and the conclusion of the industry's transition period, the company has solidified its market advantage through continuous R&D investment and brand marketing, leading to a notable enhancement in profitability. Industry demand is anticipated to stabilize and recover after the Spring Festival in 2026. Guoyuan International's key viewpoints are outlined below.

The company issued a positive profit alert, indicating its unaudited net profit for 2025 is expected to be no less than RMB 2.9 billion, a surge of over 128% compared to RMB 1.27 billion in the same period of 2024. This projected profit increase is mainly attributed to growth in electric two-wheel vehicle sales and an optimized product structure. In the first half of 2025, the company reported a net profit of RMB 1.649 billion, representing a year-on-year increase of 59.5%. Based on the profit alert, the company's profitability in the second half of 2025 is estimated to be broadly similar to that of the first half.

The new national standard for electric bicycles, the "Safety Technical Specification for Electric Bicycles" (GB 17761-2024), officially took effect on September 1, 2025. Regarding production, all electric bicycles manufactured after September 1, 2025, must comply with the new standard. For sales, an additional three-month transition period was granted for vehicles produced according to the old standard on or before August 31, 2025, allowing their sale until November 30, 2025; after December 1, 2025, all electric bicycles sold must conform to the new standard. The analysis suggests that the transition periods for implementing the old and new standards in specific production and sales aspects have now concluded. Consumer purchasing intent is expected to gradually normalize after an adjustment period, with industry sales volume projected to begin a gradual upward trajectory after the 2026 Spring Festival.

The company continuously focuses on long-term growth, persistently investing in research and development, particularly in new product innovation and advanced technologies related to core components. Concurrently, it has intensified efforts to promote the "YADEA" brand both domestically and globally. These initiatives have continuously enhanced the company's product competitiveness and global marketing capabilities. In the first half of 2025, the company's sales of electric scooters and electric bicycles reached 8,793,500 units, an increase of approximately 37.8% year-on-year. Meanwhile, the gross profit margin rose to 19.6%, up 1.6 percentage points year-on-year, indicating strengthening profitability underpinned by an improved product mix and sustained sales volume expansion.