Zhejiang Tao Motor "Riding the residential golf cart wave; initiate at a..."

Research evidence excerpt

Zhejiang Tao Motor "Riding the residential golf cart wave; initiate at a..."

Powered by Lab Global15 MayResearch2026abc Evidence UBS YES

Initiation of Coverage

EquitiesZhejiang Tao Motor

Riding the residential golf cart wave; initiate at a China

Buy rating Automobile Manufacturers

12-month rating Buy

Prior : No Rating

12m price target Rmb311.00

Golf carts gaining popularity in NA as a new method of short-distance travel

Prior :

In North America (NA), golf carts are moving from the golf course to residential

communities and are emerging as a new short-distance travel method for some Price (15 May 2026) Rmb239.79

suburban households. We forecast a 13% CAGR in sales in the US over 2025-30 to RIC: 301345.SZ BBG: 301345 CS

750,000 units in 2030, with a market size of US$10bn (>Rmb60bn). With

Trading data and key metrics

manufacturing capacity in NA and supply-chain expertise in China, we expect Zhejiang

Tao Motor (Tao Motor) to be the biggest beneficiary of the expanding community golf 52-wk range Rmb284.05-64.19

cart market in NA, with market share rising to 24% in 2030 from 10% in 2025, driving Market cap. Rmb26.1b/US$3.84b

revenue/net profit CAGRs of 25%/31% over 2025-30E. Our 2026-28 earnings forecasts Shares o/s 109m (ORDA)

are 12-15% above consensus, as we think consensus is overlooking an improving Free float 27%

competitive landscape and the company's product upgrade potential. We initiate Avg. daily volume ('000) 1,428

coverage with a Buy rating and a price target of Rmb311.00. Avg. daily value (m) Rmb333.4

Common s/h equity (12/26E) Rmb6.58b

Improving supply/demand due to NA manufacturing capacity P/BV (12/26E) 4.4x

Policy headwinds since 2025 for golf carts manufactured in China and Southeast Asia, Net debt to EBITDA (12/26E) NM