| Yadea is the largest manufacturer of electric two-wheeled vehicles in China with a 22% market share based on 2020 sales volume. Revenue generated from electric scooters and electric bicycles accounted for 44.7% and 30.2% of total revenue in 2020 respectively, while having accelerating growth on the back of replacement demand after the implementation of the “new national standard” and the additional demand from the food delivery industry. |
| Competitive Advantages |
- Large exclusive distribution networks.
Yadea had 2,955 distributors with 17,000 exclusive points of sales as of end-20, the most in the industry and represents a formidable entry barrier to new entrants.
- High profitability from economies of scale and strong bargaining power.
Yadea's 2020 gross margin were 16%, much higher than the 10.4% of the fifth-largest player Xinri due to the former's better economies of scale and stronger bargaining power.
- Short working capital days and strong cash flows.
Given its strong bargaining power, Yadea is able to request prepayments from customers and enjoy long credit terms from suppliers. As of the end of 2020, Yadea had only five days of receivables and a free cash flow-to-net income ratio of 2.2x.
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| Business Growth |
UOBKH expects Yadea's EPS to grow at a 40% CAGR in 2021-23, driven by the robust growth in China's e-bike market, as well as the company's market share gain, average selling price hike from its product portfolio upgrade, and penetration of overseas markets. |
| Market Capitalization |
Over HKD 36 billion |
Webinar Details
| Date: |
26 Oct, 2021 (Tue) |
| Time: |
7:00pm – 8:00pm
(Preparation time:6:30pm - 7:00pm) |
| Language: |
Mandarin and Cantonese |
| Moderator: |
Mr. Ivan Ip Kwok Pong
Strategist, UOB Kay Hian (Hong Kong)
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| Guest Speaker: |
Mr. Eric Chen
Director, Capital Markets, Yadea Group Holdings Ltd
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Register now!
Disclosures/Disclaimers
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