Hangcha (SH:603298) Minsheng Securities·2024-08-20 03:00Investment Rating - The report maintains a "Recommended" rating for the company, considering its position as a leading domestic forklift manufacturer benefiting from high export demand and increasing electrification rates [2][3]. Core Insights - The company reported a revenue of 8.554 billion yuan for the first half of 2024, representing a year-over-year increase of 3.74%, with a net profit of 1.007 billion yuan, up 29.29% year-over-year [2]. - The second quarter of 2024 saw revenue of 4.382 billion yuan, a year-over-year increase of 2.08%, and a net profit of 628 million yuan, reflecting a year-over-year growth of 28.07% [2]. - The company's gross margin improved to 22.21% in Q2 2024, up 2.27 percentage points year-over-year, driven by an increase in export sales and a shift towards electric forklifts [2]. Summary by Sections Revenue and Profitability - The company achieved a revenue of 85.54 billion yuan in H1 2024, with a gross margin of 21.41% and a net margin of 12.53% [2]. - The sales volume of forklifts in China reached 662,000 units in H1 2024, with exports accounting for 228,000 units, a year-over-year increase of 19.6% [2]. Market Outlook - The report anticipates a steady growth in domestic forklift sales in the second half of 2024, supported by government policies aimed at equipment upgrades and energy-saving initiatives [2]. - The company is expected to maintain its growth trajectory in exports, particularly in lithium battery forklifts, which have a competitive advantage [2]. International Expansion - The company has established over 10 overseas sales and service centers across Europe, North America, South America, Southeast Asia, and Oceania, enhancing its global market penetration [2]. - The expansion includes a focus on rental services, creating a comprehensive value chain that increases brand recognition and customer satisfaction [2]. Financial Projections - The projected net profits for 2024, 2025, and 2026 are 2.089 billion yuan, 2.352 billion yuan, and 2.632 billion yuan, respectively, with corresponding valuations of 11x, 10x, and 9x [3][7].