首次覆盖：买入，目标价332元，新兴全球 powersports 领军者
Initiate at Buy with RMB332PO: anemerging global powersports leader Initiating Coverage:BUY| PO:332.00 CNY| Price:269.20 CNY Initiate at Buy with PO ofRMB332 (23% upside potential) 07 July 2026 We initiatecoverage on CFMOTO, an emerging global powersports leader, with a Buyrating and PO of RMB332, based on 21x 2H26-1H27E EPS, 1.5x SD above its one-yearforward P/E over the past three years. We forecast 2025-28E EPS CAGR of 25%.Whybuy now?1) overseas expansion offers resilient growth amid a domestic slowdown; 2)moderate US tariffs (17.5% on Mexico-produced ATVs) support earnings recovery; and 3)lower oil prices boost demand.Where do we differ?1) we expect sustained ATVvolume/ASP growth in US vs. cautious consensus, given tariffs; 2) we believe ZEEHO’srapid scale-up is yet to reflect in valuation; and 3) our 2026-28E EPS is c.10% belowconsensus on FX headwinds.Risks:FX losses, competition, US tariff, input cost hikes. Equity Joey Yang, CFA>>Research AnalystMerrill Lynch (Hong Kong)+852 3508 4021joey.z.yang@bofa.com Andrew G. Didora, CFAResearch AnalystBofASandrew.didora@bofa.com Ming Hsun Lee, CFA>>Research AnalystMerrill Lynch (Hong Kong)minghsun.lee@bofa.com ATV and motorcycle strengthening global presenceWith 72% overseas revenue exposure in 2025, CFMOTO is evolving from a volume- driven exporter into a global powersports brand, with a key focus in North America andEurope. In ATVs, CFMOTO holds c.10% global market share and accounts for 74% ofChina’s export value - it is set to take market share in US market, leveraging itscompetitive products (c.20% cheaper vs. peers), overseas production (Mexico, Thailandfactory to reduce tariff risks), and a 3.1k+ dealer network. In motorcycles, CFMOTObegan exports in 2021 and its overseas sales reached 54% of volume in 2025 after rapidramp-up. We forecast 2025–28E sales volume CAGR of 7%/6% for ATVs/motorcycles. Fiona Liang>>Research AnalystMerrill Lynch (Hong Kong)fiona.liang3@bofa.com Jessie Lo>>Research AnalystMerrill Lynch (Singapore)jessie.lo@bofa.com Capturingpremium demand; E2W as new growth driversCFMOTO continues to move upmarketacross segments, enhancing pricing power. New ATV models (U10 Pro, Z10, upcoming RUV in 2H26) are gaining traction in the US, whilemotorcycles shift toward higher-performance models, with strong demand for 675SRand 1000MT in Europe. Domestically, it leads China’s >200cc motorcycle segment, witha 24.4% market share. With K-shaped demand emerging amid recent softness in the250-500cc range, CFMOTO accelerates expansion into >500cc and <250cc segments tocapture both premium and entry-level growth. Meanwhile, ZEEHO’s rapid scale-up (551kunits in 2025, +381% YoY) underscores strong E2W momentum - we estimate salesvolume of 1.8mn by 2028E, implying c.6% share in China’s premium E2W market. E2W: electric two wheelerATV: all-terrain vehicleASP: average selling price >> Employed by a non-US affiliate of BofAS and is not registered/qualified as a research analystunder the FINRA rules.Refer to "Other Important Disclosures" for information on certain BofA Securities entities that take responsibility for the information herein in particular jurisdictions.BofA Securities does and seeks to do business with issuers covered in its research reports. As a result, investors should be aware that the firm may have a conflict ofinterest that could affect the objectivity of this report. Investors should consider thisreport as only a single factor in making their investment decision.Refer to important disclosures on page 28 to 30. Analyst Certification on page 25. Price Objective Basis/Risk on page 25.12990899 iQprofileSMCFMOTO (A) Company Sector Autos/Car Manufacturers Company Description Founded in 1989, Zhejiang CFMoto Power Co., Ltd. is apowersports companyspecializing in powersports,including all-terrain vehicles (ATVs), motorcycles andpowersports components. The company has established astrong global presence, exporting to over 100countries/regions. CFMoto focuses on mid-to high-endsegments, combining in-house engine development withstrategic partnerships to enhance product performance.The company is expanding into electric two wheelersegments with Zeeho brand. Investment Rationale We have a Buy for CFMoto. We expect CFMoto to poststronggrowth in 2026-28E, fueled by (1) acceleratedoverseas expansion supported by overseas production baseand competitive products, (2) product premiumization:shift to high-performance models (U10PRO, 450SR, 750SR)drives higher ASP and margins, (3) premium E2W brandZeeho scaling rapidly as a long-term growth driver. Stock Data Price to Book Value4.6x Focus charts Exhibit1:CFMOTO’srevenuebreakdownby productFour wheelers/motorcycles/E2Ws revenue contribution came in at 49%/33%/10% in 2025 Exhibit4:Chinalarge-displacement motorcycle volume sales (includingexport) and penetration China ATV export sales value accounted for 11% global ATV sales value in2025 China large-displacement motorcycle volume s