Investment Rating - The investment rating for the company is "Buy" (maintained) [1][9] Core Views - The company is executing a globalization strategy and developing a diversified business system to create a new growth curve [2][5] - The company has shown steady improvement in profitability, with a significant increase in net profit and gross margin in recent quarters [5][8] - The company is expanding its overseas market presence, achieving record sales and establishing a robust global service network [5][6][8] Financial Performance - In 2024, the company achieved revenue of 16.5 billion, a year-on-year increase of 1.3%, and a net profit of 2 billion, up 18% year-on-year [5] - For Q1 2025, the company reported revenue of 4.51 billion, a year-on-year increase of 8%, and a net profit of 440 million, up 15% year-on-year [5] - The gross margin for Q1 2025 was 20.5%, a slight decrease compared to the previous year, while the net profit margin improved to 10% [5] Market Expansion - The company achieved domestic and overseas revenues of 9.4 billion and 6.8 billion respectively in 2024, with overseas revenue growing by 4.8% year-on-year [5] - The company has established over 10 overseas subsidiaries in key markets, enhancing its global marketing and after-sales service network [5][6] R&D and Innovation - The company invested 770 million in R&D in 2024, a year-on-year increase of 4.6%, focusing on integrating global technology resources [5][8] - The company has developed 52 marketable R&D projects and 25 technology applications in 2024 [5][6] Future Projections - Revenue projections for 2025-2027 are 18.45 billion, 20.47 billion, and 22.51 billion respectively, with corresponding net profits of 2.23 billion, 2.43 billion, and 2.68 billion [7][9] - The company is expected to maintain a stable gross margin and leverage its competitive product offerings to sustain growth [8][9]

Investment Rating - The investment rating for the company is "Accumulate" [2][10] Core Views - The company has shown steady growth in performance, with revenue of 16.486 billion yuan in 2024, a year-on-year increase of 1.15%, and a net profit attributable to shareholders of 2.022 billion yuan, up 17.86% year-on-year [5] - The gross margin has significantly improved, reaching 23.55% in 2024, an increase of 2.77 percentage points year-on-year, driven by the growth in international sales [6] - The company is well-positioned to benefit from the strong trend towards electrification in the industry, with electric forklifts accounting for 73.61% of the market [7] - The company has expanded its international presence, with overseas sales surpassing 100,000 units in 2024, representing over 40% of total revenue [8] Financial Performance - In Q1 2025, the company achieved revenue of 4.506 billion yuan, a year-on-year increase of 8.02%, and a net profit of 436 million yuan, up 15.18% year-on-year [5] - The company forecasts revenue growth for 2025-2027, with expected revenues of 17.656 billion yuan, 19.375 billion yuan, and 21.136 billion yuan, representing year-on-year growth rates of 7.10%, 9.74%, and 9.09% respectively [9] - The projected net profit for the same period is 2.230 billion yuan, 2.449 billion yuan, and 2.672 billion yuan, with growth rates of 10.30%, 9.80%, and 9.11% respectively [9] Valuation Metrics - The company’s projected P/E ratios for 2025-2027 are 10.95, 9.98, and 9.14, indicating a favorable valuation outlook [10]

Investment Rating - The report maintains an "Accumulate" rating for the company [2][10]. Core Insights - The company has demonstrated steady growth in performance, with 2024 revenue reaching 16.486 billion yuan, a year-on-year increase of 1.15%, and a net profit attributable to shareholders of 2.022 billion yuan, up 17.86% year-on-year [5]. - The gross profit margin has significantly improved, with a 2024 gross margin of 23.55%, an increase of 2.77 percentage points year-on-year [6]. - The company is benefiting from the strong momentum in the lithium battery sector, with electric forklifts accounting for 73.61% of the market and lithium battery forklifts making up 47.43% of electric forklifts [7]. - The company has expanded its international presence, with overseas sales surpassing 100,000 units in 2024, accounting for over 40% of total revenue [8]. Financial Performance Summary - In 2024, the company achieved a revenue of 16.486 billion yuan, with a net profit of 2.022 billion yuan and a net profit margin of 12.3% [12]. - The projected revenues for 2025, 2026, and 2027 are 17.656 billion yuan, 19.375 billion yuan, and 21.136 billion yuan, respectively, with corresponding growth rates of 7.10%, 9.74%, and 9.09% [9][12]. - The earnings per share (EPS) are expected to increase from 1.54 yuan in 2024 to 2.04 yuan by 2027 [12].

Investment Rating - The investment rating for the company is "Accumulate" [5] Core Views - The company's performance growth is steady, with a 15% year-on-year increase in net profit attributable to shareholders, slightly exceeding expectations [2] - The company achieved a revenue of 4.5 billion yuan in Q1 2025, representing an 8% year-on-year growth, while the net profit attributable to shareholders reached 440 million yuan, marking a 15% increase [2] - The company maintains stable profitability and cost control, with a gross margin of 20.5% and a net profit margin of 10.0% in Q1 2025 [3] - The company's exposure to the U.S. market is limited, and the impact is manageable due to pre-stocking and overseas capacity layout [4] - Future focus areas include domestic demand recovery, electrification, and advancements in smart logistics [4] Summary by Sections Financial Performance - In Q1 2025, the company reported a revenue of 4.5 billion yuan, a year-on-year increase of 8%, and a net profit of 440 million yuan, up 15% year-on-year [2] - The gross margin was 20.5%, remaining stable year-on-year, while the net profit margin increased by 0.4 percentage points to 10.0% [3] Market Outlook - The company has a limited exposure to the U.S. market, with revenue exposure in single digits, and has taken measures to mitigate risks [4] - The domestic market is expected to recover, driven by equipment upgrades and the replacement of manual hydraulic trucks, with a projected electrification rate of 35% by 2024 [4] - The non-U.S. market expansion remains promising, with significant opportunities in regions like Europe and Thailand [4] Profit Forecast and Valuation - The profit forecast for 2025-2027 is maintained at 22 billion, 24 billion, and 27 billion yuan respectively, with current market capitalization corresponding to P/E ratios of 11, 10, and 9 times [5]

Summary of Hangcha Group's Conference Call Company Overview - **Company**: Hangcha Group - **Industry**: Forklift and Industrial Vehicle Manufacturing Key Financial Performance - **Q1 2025 Revenue**: 4.5 billion CNY, up 8% YoY [2] - **Net Profit**: 436 million CNY, up 15.18% YoY, driven by increased sales and higher export ratio [2] - **Cash Flow**: Operating cash flow decreased to 217 million CNY YoY due to increased overseas operations and longer payment terms [2] Revenue Growth Breakdown - **Overall Growth**: Approximately 18% [1] - **Domestic Market Growth**: 13.01% YoY [1] - **Export Market Growth**: 3.18% YoY [1] - **Product Categories**: - Class I Vehicles: 18% growth - Class II Vehicles: 23.5% growth - Class III Vehicles (Type I): 32% growth - Class III Vehicles (Type II): 73% growth [1][4] Business Segment Performance - **Intelligent Segment**: 40% growth YoY [5] - **Heavy-duty Trucks**: 30% growth YoY [5] - **New Energy Trucks**: 15% growth YoY [5] - **Leasing Business**: 22% growth YoY [5] - **Industrial Vehicle Sales**: Over 100% growth YoY [5] - **High Silver Financial Business**: Decreased by approximately 30% YoY [5] Strategic Initiatives - Focus on promoting new energy forklifts, especially in emerging markets [6] - Expansion into port logistics equipment and heavy-duty products due to high demand in domestic industries [6] - Q2 Strategy: "Take one step at a time" while waiting for national policy adjustments [7] - Stopped U.S. operations due to tariffs, accelerating overseas capacity expansion, with a factory in Thailand expected to be operational by Q3 [7] Market and Industry Insights - **Gross Margin Trends**: Slight decline in overall gross margin; domestic gross margin slightly up, while export gross margin down by about 3 percentage points [3][9] - **U.S. Market Impact**: U.S. operations halted due to tariffs; focus shifted to Brazil, Southeast Asia, and other markets [10] - **Policy Influence**: National policies have positively impacted new orders and customer demand [8][19] Future Outlook - **2025 Goals**: Maintain a target of 10% revenue and profit growth [8] - **Market Trends**: Anticipated 30% to 40% growth in Class III forklifts due to rapid logistics and warehousing development [20] - **International Trade Strategy**: Plans to manufacture in third-party countries to mitigate tariff impacts [23][24] Additional Considerations - **Dividend Policy**: Proposed cash dividend of 5 CNY per 10 shares, reflecting a 32.3% payout ratio [33] - **Currency Impact**: Optimistic about the effects of RMB depreciation on profits and revenues [29] - **Long-term Planning**: Current global economic uncertainties complicate long-term strategies; focus on daily operations and market responsiveness is emphasized [30][34] This summary encapsulates the key points from Hangcha Group's conference call, highlighting financial performance, strategic initiatives, market insights, and future outlook.

Investment Rating - The report maintains an "Accumulate" rating for the company [8] Core Views - The company achieved a revenue of 4.506 billion RMB in Q1 2025, representing a year-over-year increase of 8.02% and a quarter-over-quarter increase of 20.07%. The net profit attributable to the parent company was 436 million RMB, up 15.18% year-over-year but down 2.85% quarter-over-quarter, indicating that the company's performance is generally in line with expectations [1] - The company is expected to maintain a steady growth trajectory in 2025 due to product structure optimization and deepening domestic and international layouts [1] - The gross margin for Q1 2025 was 20.51%, which is relatively stable compared to the previous year, while the expense ratio slightly increased to 10.97% [2] - The company is expanding its global supply capabilities with a new manufacturing base in Thailand, expected to be operational by the end of 2025, which will enhance local manufacturing and service capabilities [3] - The company has launched a diversified overseas business, including a leasing company in Europe, aimed at promoting low-carbon development and providing flexible options for customers [4] Financial Forecast and Valuation - The company is projected to achieve net profits of 2.248 billion RMB, 2.516 billion RMB, and 2.807 billion RMB for the years 2025, 2026, and 2027, respectively, with a compound annual growth rate (CAGR) of 11.74% [5] - The target price for the company is set at 24.08 RMB, based on a price-to-earnings (PE) ratio of 14 times for 2025, reflecting a premium due to the company's proactive expansion of overseas sales channels and the upcoming production capacity in Thailand [5][9]

Core Insights - Hangcha Group reported strong financial performance for Q1 2025, with revenue of 4.506 billion yuan, a year-on-year increase of 8.02%, and net profit of 436 million yuan, up 15.18% [1][2] - The company has maintained a consistent growth trajectory, achieving nine consecutive years of net profit increases, with a net profit of 2.022 billion yuan in 2024 [2][4] - Hangcha Group plans to distribute a cash dividend of 0.5 yuan per share for 2024, totaling 655 million yuan, which represents 32.39% of the net profit [1][4] Financial Performance - In Q1 2025, the gross margin was 20.51% and the net margin was 10.02% [3] - The gross margin for 2024 was 23.55%, the highest in eight years, while the net margin reached a historical high of 13.11% [3] Company Overview - Hangcha Group, established in 1956, specializes in high-end equipment manufacturing, particularly in industrial vehicles, and ranks 8th globally in forklift revenue according to MMH [2] - The company has a comprehensive product line, including forklifts, automated guided vehicles, and smart logistics solutions [5] R&D and Innovation - In 2024, Hangcha Group invested 774 million yuan in R&D, accounting for 4.70% of revenue, with 1,151 R&D personnel [6] - The company achieved 52 marketable R&D projects and 25 technology applications, with 129 patents granted, including 82 invention patents [6] Global Expansion - Hangcha Group is expanding its global footprint, establishing a wholly-owned manufacturing subsidiary in Thailand and sales companies in Malaysia and Vietnam [7] - In 2024, overseas product sales reached a record high of 100,000 units, with international revenue of 6.846 billion yuan, a 4.75% increase year-on-year [9]

Core Viewpoint - The company demonstrates stable revenue growth and continuous improvement in profitability, with significant advancements in lithium battery forklift technology and strategic overseas expansion [2][3][4][5]. Group 1: Financial Performance - In 2024, the company achieved a revenue of 16.49 billion yuan, representing a year-on-year growth of 1.15% (adjusted), and a net profit attributable to shareholders of 2.02 billion yuan, up 17.9% (adjusted) [2]. - For Q1 2025, the company reported a revenue of 4.51 billion yuan, reflecting an 8.0% year-on-year increase, and a net profit of 440 million yuan, which is a 15.2% growth [2]. Group 2: Lithium Battery Forklift Development - In 2024, China's total forklift sales reached 1.286 million units, marking a 9.5% increase year-on-year, with electric forklifts accounting for 73.6% of total sales [3]. - The company made significant breakthroughs in the lithium battery forklift sector, launching multiple high-performance models, enhancing its competitive edge in both domestic and international markets [3]. Group 3: Overseas Expansion - The company generated 6.85 billion yuan in overseas revenue in 2024, a 4.8% increase, with overseas sales exceeding 100,000 units, setting a historical record [4]. - To mitigate risks from international trade uncertainties, the company established a wholly-owned manufacturing subsidiary in Thailand, enhancing local supply capabilities and reducing tariff costs through ASEAN free trade agreements [4]. Group 4: AI and Smart Logistics - In 2024, the company's smart logistics solutions contracts exceeded 1 billion yuan, achieving significant milestones in overseas markets [5]. - The company is actively promoting the application of AI technology in smart logistics, investing in humanoid robots, and aiming to create comprehensive AI logistics solutions to meet the growing market demand [5].

业绩稳定增长，盈利能力持续提升 杭叉集团2024年实现营业收入164.9亿元，同比增长1.15%（调整后）；归母净利润20.2亿元，同比增长 17.9%（调整后）。毛利率为23.6%，同比上升2.8个百分点；净利率为13.1%，同比上升1.8个百分点。 公司2025年一季度实现营业收入45.1亿元，同比增长8.0%；归母净利润4.4亿元，同比增长15.2%。毛利率 为20.5%，同比下降0.1个百分点；净利率为10.0%，同比上升0.4个百分点。 点击注册小程序 查看完整报告 特别申明： 本订阅号中所涉及的证券研究信息由光大证券研究所编写，仅面向光大证券专业投资者客 户，用作新媒体形势下研究信息和研究观点的沟通交流。非光大证券专业投资者客户，请勿 订阅、接收或使用本订阅号中的任何信息。本订阅号难以设置访问权限，若给您造成不便， 敬请谅解。光大证券研究所不会因关注、收到或阅读本订阅号推送内容而视相关人员为光大 证券的客户。 报告摘要 本订阅号是光大证券股份有限公司研究所（以下简称"光大证券研究所"）依法设立、独立运营的 官方唯一订阅号。其他任何以光大证券研究所名义注册的、或含有"光大证券研究"、与光大证券 研究 ...

Investment Rating - The report maintains a "Buy" rating for the company [9] Core Views - The company achieved stable revenue growth, with a 2024 revenue of 16.49 billion yuan, a year-on-year increase of 1.15%, and a net profit of 2.02 billion yuan, up 17.9% year-on-year [5] - The company is expected to benefit significantly from the ongoing electrification of forklifts, with electric forklifts accounting for 73.6% of total sales in 2024 [6] - The company is actively expanding its overseas manufacturing bases, achieving overseas revenue of 6.85 billion yuan in 2024, which accounts for 41.5% of total revenue [7] - The company is pushing for the application of AI technology in smart logistics, with a contract amount for smart logistics solutions exceeding 1 billion yuan for the first time in 2024 [8] Summary by Sections Financial Performance - In 2024, the company reported a revenue of 16.49 billion yuan and a net profit of 2.02 billion yuan, with gross margin at 23.6% and net margin at 13.1% [5] - For Q1 2025, the company achieved a revenue of 4.51 billion yuan, a year-on-year increase of 8.0%, and a net profit of 440 million yuan, up 15.2% [5] Market Position and Growth Drivers - The total sales of forklifts in China reached 1.286 million units in 2024, a year-on-year increase of 9.5%, with significant growth in electric forklift sales [6] - The company launched several high-performance lithium battery forklifts in 2024, enhancing its competitive edge in the market [6] International Expansion - The company established a wholly-owned manufacturing subsidiary in Thailand, planning an annual production capacity of 10,000 units, which enhances its local supply capabilities in Southeast Asia [7] Technological Advancements - The company is investing in AI technology for smart logistics, with significant contracts awarded in various sectors, indicating a strong market demand for intelligent logistics solutions [8] Profit Forecast and Valuation - The report slightly lowers the net profit forecast for 2025-2026 by 3.9% and 7.4% to 2.25 billion yuan and 2.50 billion yuan, respectively, while introducing a 2027 forecast of 2.82 billion yuan [9] - The expected EPS for 2025, 2026, and 2027 are projected to be 1.71 yuan, 1.91 yuan, and 2.15 yuan, respectively [10]