DAHON TECH (02543) reversed its decline and surged in afternoon trading, rising over 6%. As of press time, the stock was up 6.24% at HK$62.15, with trading volume reaching HK$19.67 million.

On the news front, Zhongtai Securities noted that the company is China's largest folding bicycle manufacturer. The company focuses on various folding bicycle products, with five major series covering different consumer segments. In terms of product positioning, mid-range products priced between 2,500-3,000 yuan accounted for nearly 70% of the company's products in 2024, with the proportion of mid-range products gradually increasing. Distribution channels are primarily through dealers, accounting for approximately 70%. From a manufacturing perspective, capacity bottlenecks have emerged with sales growth, leading to OEM production exceeding 50% in 2024.

From 2023 to January-April 2025, the company's revenue grew 18.1%, 50.2%, and 46.9% year-over-year respectively; net profit increased 10.9%, 50.1%, and 69.1% year-over-year respectively, maintaining rapid growth.

Dongwu Securities stated that folding bikes offer advantages such as convenient storage and compatibility with certain public transportation, making them more suitable for urban office workers and cycling enthusiasts. They are also better matched to China's relatively well-developed urbanization level and good urban infrastructure cycling environment, thereby achieving high demand growth. The firm recommends focusing on investment opportunities brought by emerging new consumption trends. The drivers of new consumption include the formation of new consumption habits and new brands breaking into mainstream markets. Cycling, as an increasingly popular and interesting form of exercise, with both penetration rate and average spending per customer increasing, represents a noteworthy new consumption trend.