BOCOM International released a research report stating that YADEA Group Holdings Limited (01585) has returned to normal shipment rhythm in the first half of the year, with its two-wheeler electric vehicle business gradually recovering. Sales of electric bicycles and electric scooters increased to 6.666 million and 2.128 million units respectively.
Due to improved product structure, YADEA's gross margin increased by 1.6 percentage points to 19.6%, reaching a historical high. With expectations for further gross margin improvement, BOCOM International maintains its "Buy" rating on YADEA, noting that new national standards will be officially implemented on September 1 this year, marking the industry's entry into a new development cycle. Combined with positive prospects for overseas business, the firm has raised its revenue forecasts for 2025-2027 by 2% to 4% and net profit forecasts by 1% to 2%, upgrading the target price from HK$19.84 to HK$22.63.