Company Coverage
Yadea Group Holdings (1585 HK): 1H26: Net Profit Misses On Sales Volume, Set To Recover From 2H26
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$10.30
HK$16.00
+55.3%
HK$18.00
Analyst
Highlights
1H26 net profit missed estimates at Rmb1.2b (-27% yoy), with the misses in sales volume and margins offsetting the beat in ASP.
Sales volume is set to recover from 2H26, driven by strong order flows, market share gain amid accelerating industry consolidation, new product debuts, and overseas expansion.
ASP and margins will be underpinned by premiumisation and globalisation of sales mix.
Cut our 2026-28 net profit forecasts by 14%/9%/10% to Rmb2,768m/Rmb3,340m/Rmb3,696m respectively, based on lower sales volume and higher ASP. Maintain BUY and cut target price from HK$18.00 to HK$16.00.
Analysis
1H26 net profit missed estimates at Rmb1.2b (-27.2% yoy), due to lower than-expected sales volume and margins.
Revenue dropped 5% yoy to Rmb18.24b in 1H26 on disappointing sales volume of 7.63m units (-13.2% yoy) and upbeat ASP of Rmb1,663 (+11.6% yoy). The sales drop was due to the implementation of the new national standard on 1 Dec 25 and the cancellation of state’s trade-in subsidies for two-wheeled electric vehicles (2WEVs) on 1 Jan 26, which weighed on end-demand, as well as the destocking of 0.8m units in 1H25, which raised the comparison base. The ASP hike was due to product mix optimisation. The share of the pricier electric scooters (ASP: Rmb1,845) in total sales volume rose 21.5ppt yoy to 45.7% in 1H26.
Highlights
1H26 net profit missed estimates at Rmb1.2b (-27% yoy), with the misses in sales volume and margins offsetting the beat in ASP.
Sales volume is set to recover from 2H26, driven by strong order flows, market share gain amid accelerating industry consolidation, new product debuts, and overseas expansion.
ASP and margins will be underpinned by premiumisation and globalisation of sales mix.
Cut our 2026-28 net profit forecasts by 14%/9%/10% to Rmb2,768m/Rmb3,340m/Rmb3,696m respectively, based on lower sales volume and higher ASP. Maintain BUY and cut target price from HK$18.00 to HK$16.00.
Analysis
1H26 net profit missed estimates at Rmb1.2b (-27.2% yoy), due to lower than-expected sales volume and margins.
Revenue dropped 5% yoy to Rmb18.24b in 1H26 on disappointing sales volume of 7.63m units (-13.2% yoy) and upbeat ASP of Rmb1,663 (+11.6% yoy). The sales drop was due to the implementation of the new national standard on 1 Dec 25 and the cancellation of state’s trade-in subsidies for two-wheeled electric vehicles (2WEVs) on 1 Jan 26, which weighed on end-demand, as well as the destocking of 0.8m units in 1H25, which raised the comparison base. The ASP hike was due to product mix optimisation. The share of the pricier electric scooters (ASP: Rmb1,845) in total sales volume rose 21.5ppt yoy to 45.7% in 1H26.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$10.30
HK$16.00
+55.3%
HK$18.00
Analyst
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