YADEA Group Holdings Ltd. (01585) saw its shares climb more than 3% during the trading session. At the time of writing, the stock was up 2.81%, trading at HK$12.07, with a turnover of HK$152 million.
The company recently announced that the group expects to record a net profit of no less than RMB 2.9 billion for the fiscal year ending December 31, 2025, compared to a net profit of RMB 1.27 billion for the same period in 2024.
The anticipated increase in net profit is primarily attributed to higher sales of electric two-wheelers and an optimized product mix.
Citigroup believes that industry consolidation may accelerate, positioning YADEA, as the market leader, to be the primary beneficiary.
Currently, the company trades at a price-to-earnings ratio of 10.9 times and offers a dividend yield of 4.6%. With the advancement of new standards and rising sales of premium products, its profit growth rate is expected to remain robust, making it an attractive investment opportunity within the sector.
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