Initiate at Buy with RMB332 PO: an emerging global powersports leader

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Initiate at Buy with RMB332 PO: an emerging global powersports leader

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CFMOTO (A)

Initiate at Buy with RMB332 PO: an

emerging global powersports leader

Initiating Coverage: BUY | PO: 332.00 CNY | Price: 269.20 CNY

Initiate at Buy with PO of RMB332 (23% upside potential) 07 July 2026

We initiate coverage on CFMOTO, an emerging global powersports leader, with a Buy Equity

rating and PO of RMB332, based on 21x 2H26-1H27E EPS, 1.5x SD above its one-year

forward P/E over the past three years. We forecast 2025-28E EPS CAGR of 25%. Why Joey Yang, CFA >> Research Analyst

buy now? 1) overseas expansion offers resilient growth amid a domestic slowdown; 2) Merrill Lynch (Hong Kong)

moderate US tariffs (17.5% on Mexico-produced ATVs) support earnings recovery; and 3) +852joey.z.yang@bofa.com3508 4021

lower oil prices boost demand. Where do we differ? 1) we expect sustained ATV Andrew G. Didora, CFA

volume/ASP growth in US vs. cautious consensus, given tariffs; 2) we believe ZEEHO’s Research Analyst

BofAS

rapid scale-up is yet to reflect in valuation; and 3) our 2026-28E EPS is c.10% below andrew.didora@bofa.com

consensus on FX headwinds. Risks: FX losses, competition, US tariff, input cost hikes. Ming Hsun Lee, CFA >>

Research Analyst

ATV and motorcycle strengthening global presence Merrillminghsun.lee@bofa.comLynch (Hong Kong)

With 72% overseas revenue exposure in 2025, CFMOTO is evolving from a volume- Fiona Liang >>

driven exporter into a global powersports brand, with a key focus in North America and Research Analyst

Europe. In ATVs, CFMOTO holds c.10% global market share and accounts for 74% of Merrillfiona.liang3@bofa.comLynch (Hong Kong)

China’s export value - it is set to take market share in US market, leveraging its Jessie Lo >>