Yadea Holdings (01585.HK) In-Depth Investment Analysis: Value Discovery with 128% YoY Net Profit Growth

Based on the obtained data and in-depth analysis, I will provide you with a comprehensive investment research report on Yadea Holdings:

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Yadea Holdings released a positive profit alert on January 6, 2026, stating that the company’s full-year 2025 net profit is expected to be no less than

, representing a from 2024’s RMB 1.27 billion, hitting a record high since the company’s establishment [1][2]. This achievement not only marks the company’s successful emergence from the 2024 performance trough but also sets a new profit ceiling for the industry.

Financial Indicator	2024	2025	YoY Change
Operating Revenue	RMB 26.507 billion	~RMB 38 billion (estimated)	+43%
Net Profit	RMB 1.27 billion	≥RMB 2.9 billion	+128%
Gross Margin	15.19%	19.61% (H1)	+4.42pct
Net Margin	5.8%	8.6% (H1)	+2.8pct
Average Unit Price	RMB 1,487	RMB 2,360 (estimated)	+59%

2025 marked the first year of the national electric bicycle trade-in policy’s implementation. Data from the Ministry of Commerce shows that from January to March, monthly average trade-in vehicle purchases grew 285% month-over-month; as of April 8, the number of old vehicles sold and new vehicles traded in both exceeded 3.34 million units, equivalent to 2.4 times the total replacement volume from September to December 2024 [1]. Leveraging its channel advantage of over 40,000 offline stores, Yadea ranks among the top in the industry in terms of terminal share among the 64,000 stores participating in the trade-in program.

Yadea has focused on mid-to-high-end products such as the Crown and Modern series. According to iResearch data, in 2025, the company’s sales share of high-end products priced above RMB 3,000 reached

, leading the industry [3]. The improvement in product structure directly drove the average unit price up from RMB 1,485 in 2024 to RMB 2,300 in H1 2025, with a full-year estimate of RMB 2,360 [3].

Yadea has built a three-tier global layout of “R&D - Manufacturing - Brand”, with million-unit annual production bases in Vietnam and Indonesia, and a North American R&D center in Mexico. By the end of 2025, global sales reached 100 million units, and overseas sales accounted for 35% of total revenue, a significant increase from 12% in 2019 [1].

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Yadea has continuously promoted its premiumization strategic transformation since first publicly stating the slogan “Higher-End Electric Vehicles” in 2014:

• 2020
  : Launched the Crown series, positioned with “Long Battery Life”
• 2024
  : Crown Series 6 equipped with TTFAR 6.0 long-range system, with a range exceeding 200 km
• 2025
  : Launched the VFLY sub-brand in collaboration with Porsche Design Studio, priced between RMB 6,999 and RMB 19,800
• Technological Innovation
  : Pioneered graphene battery patent technology, sodium-ion battery technology

Indicator	2024	2025	Change Magnitude
R&D Investment	RMB 1.147 billion	≥RMB 1.2 billion	Remained High
Average Unit Price	RMB 1,487	RMB 2,360	+59%
Gross Margin	15.19%	19.61%	+4.42pct
High-End Product Share	~35%	>50%	+15pct

: From 2022 to 2024, cumulative R&D investment reached RMB 3.45 billion, and H1 2025 R&D expenses were RMB 624 million, a 27% year-over-year increase [3]. High R&D investment provides solid technical support for premiumization.

Company	Gross Margin	Market Cap (April 2025)	High-End Market Positioning
Yadea	19.61%	RMB 42.19 billion	Benchmark for premiumization of traditional brands
Ninebot	28.24%	RMB 42.9 billion	Leader in the above-RMB 4,000 market

Although Yadea’s gross margin is still lower than Ninebot’s 28.24%, it has improved significantly compared to its historical levels, and it leads traditional brands in the premiumization process [3].

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:

1. Product Structure Optimization
   : Increased share of high-end products drove a 59% increase in overall average unit price
2. Economies of Scale
   : Full-year sales reached approximately 16.5-17 million units, a ~27% increase from 13 million units in 2024
3. Enhanced Cost Control
   : Supply chain optimization and improved manufacturing efficiency

:
H1 2025 net margin reached 8.60%, up 2.8 percentage points from 5.8% in 2024, mainly benefiting from:

• Gross profit expansion from higher gross margin
• Lower expense ratio from improved operational efficiency
• Excellent operating cash flow performance

Financial Dimension	Assessment Conclusion
Profitability	Significantly improved, net profit hit a record high
Operating Capacity	Channel advantages consolidated, inventory effectively digested
Cash Flow	Excellent operating cash flow performance
Growth	Dual-driven by premiumization and globalization

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Time Period	Stock Price Performance	Remarks
Early 2025	~HK$13.0	Starting point of the year
Full Year 2025	Closed at HK$11.37, down 12.13%	Rally followed by a pullback
January 6, 2026	Gapped up after profit alert release, closed at HK$11.74	Single-day gain of 4.63%

: In 2025, Yadea delivered outstanding performance, but its stock price closed down 12.13% for the full year, showing a clear divergence from its high growth [3].

Indicator	Current Value	Signal Interpretation
Current Price	HK$11.74	-
20-Day Moving Average	HK$12.68	Price broke below short-term moving average
50-Day Moving Average	HK$12.76	Price broke below medium-term moving average
200-Day Moving Average	HK$11.17	Price above long-term moving average
RSI(14)	34.17	Approaching oversold territory
MACD	-0.2920	Below zero axis
Short-Term Trend	Downward	Short-term moving averages formed a death cross

: The stock price is in a short-term adjustment phase, but the long-term moving average still shows an upward trend, and the RSI is approaching oversold territory, suggesting potential rebound opportunities.

Institution	Rating	Target Price
Citi	Buy	HK$22.5
Mainstream Institutions	Buy/Overweight	HK$16-HK$22.63
Number of Ratings	15 institutions	-

The current stock price of HK$11.74 implies

from Citi’s target price of HK$22.5 [3]. The current price-to-earnings ratio is 17.83x, price-to-book ratio is 3.63x, and dividend yield is 3.83%, representing an attractive valuation.

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• Global Sales Leader
  : Ranked first in global sales for eight consecutive years
• Domestic Market Share
  : 26.3% market share in H1 2025, firmly leading the industry
• Industry Concentration
  : Concentration among leading enterprises significantly increased in 2025, forming a duopoly pattern of “Yadea + Ninebot”

Advantage Area	Specific Performance
Channel Advantage	Over 40,000 offline stores, widest coverage in the industry
Brand Advantage	Ranked first in global sales for eight consecutive years
Technological Advantage	Core technologies such as graphene batteries and sodium-ion batteries
Scale Advantage	Annual production capacity exceeding 10 million units
Global Layout	Global production bases in Vietnam, Indonesia, Mexico, etc.

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1. Explosive Performance Growth
   : 128% YoY net profit growth, hitting a record high
2. Significant Effectiveness of Premiumization Strategy
   : 59% increase in average unit price, significant gross margin improvement
3. Sustained Policy Dividends
   : Trade-in policy continues to release replacement demand
4. Globalization Opens Second Growth Curve
   : Overseas revenue share increased to 35%
5. Attractive Valuation
   : 17.83x P/E, nearly 100% upside implied by institutional target prices

Risk Type	Specific Content
Industry Risk	New National Standard implementation is less than expected
Policy Risk	Changes to trade-in subsidy policies
Competitive Risk	Continued premiumization by competitors such as Ninebot
Macroeconomic Risk	Weak consumer demand, fluctuations in raw material prices
Valuation Risk	Divergence between stock price and performance may persist

: Neutral Bullish

• Market sentiment improved after profit alert release
• Technical RSI is approaching oversold territory, creating rebound demand

: Optimistic

• Continued advancement of premiumization strategy
• Policy dividends + release of replacement demand
• High performance growth is expected to continue

: Positive Outlook

• Solid leading position in the industry
• Globalization strategy opens growth space
• Attractive valuation

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The above chart shows:

1. Net Profit Comparison
   : 2024’s RMB 1.27 billion vs. 2025’s expected RMB 2.9 billion, 128% YoY growth
2. Profitability Trend
   : Gross margin increased from 15.19% to 19.61%, net margin increased from 5.8% to 8.6%
3. Average Unit Price Change
   : Increased from RMB 1,487 to RMB 2,360, demonstrating significant effectiveness of the premiumization strategy
4. R&D Investment
   : Sustained high investment, providing technical support for premiumization

The above chart shows:

1. Stock Price Trend and Moving Averages
   : 2025 saw a rally followed by a pullback, with the current price below the 20-day and 50-day moving averages
2. Volume Analysis
   : Trading volume fluctuated with key events
3. RSI Indicator
   : Current value of 34.17, approaching oversold territory
4. MACD Indicator
   : MACD is below the zero axis, indicating a short-term adjustment pattern

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Yadea Holdings’ outstanding 2025 performance with 128% YoY net profit growth fully proves the correctness and effectiveness of its premiumization strategy. From product structure optimization to profitability improvement, from channel advantage consolidation to breakthroughs in global layout, Yadea is undergoing a strategic transformation from “scale expansion” to “quality enhancement”.

Despite the divergence between stock price performance and earnings in 2025, with the continuous deepening of its premiumization strategy, sustained release of policy dividends, and continuous expansion of overseas markets, the company is expected to achieve a favorable pattern of “volume and price growth”. The current valuation is attractive, with institutional target prices implying nearly 100% upside potential. Investors are advised to pay close attention.

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[1] Sanche Caiguan - “2025 Earnings Insight: Yadea Breaks Through the Industry Profit Ceiling and Launches a Premiumization Breakthrough Battle” (https://www.163.com/dy/article/KJ19JDVA0556BZQM.html)

[2] Sina Finance - “2025 Earnings Insight: Yadea Breaks Through the Industry Profit Ceiling and Launches a Premiumization Breakthrough Battle” (https://cj.sina.cn/articles/view/6697701948/18f36d23c00102aof0?froms=ggmp)

[3] 36Kr - “The Automotive Industry May Not Realize That Two-Wheeler Maker Yadea Is More Profitable Than Four-Wheeler Makers?” (https://www.36kr.com/p/3631808920793858)