Hangcha (603298) 国海证券·2024-08-21 16:00Investment Rating - The report maintains an "Overweight" rating for Hangcha Group (603298) [1] Core Views - Hangcha Group achieved rapid growth in profitability in H1 2024, with revenue increasing by 3.74% YoY to 8.554 billion yuan and net profit attributable to shareholders surging 29.29% YoY to 1.007 billion yuan [2] - In Q2 2024, revenue reached 4.382 billion yuan, up 2.08% YoY and 5.05% QoQ, while net profit attributable to shareholders jumped 28.07% YoY and 65.80% QoQ to 628 million yuan [3] - The company's gross margin improved to 21.41% in H1 2024, up 2.34 percentage points YoY, with net profit margin reaching 11.77%, up 2.33 percentage points YoY [3] - The forklift industry maintained steady growth in both domestic and export sales, with total sales volume reaching 662,100 units in H1 2024, up 13.09% YoY [3] Financial Performance - Hangcha Group's operating income is expected to reach 17.526 billion yuan in 2024, with a YoY growth rate of 8%, and net profit attributable to shareholders is projected to be 2.030 billion yuan, up 18% YoY [4] - The company's ROE is forecasted to remain at 20% from 2024 to 2025, with EPS expected to grow from 1.55 yuan in 2024 to 1.96 yuan in 2026 [6] - Hangcha Group's P/E ratio is estimated to decline from 10.37 in 2024 to 8.20 in 2026, indicating improving valuation metrics [6] Industry Trends - The forklift industry's electrification continues to advance, with the electrification rate of non-Class III forklifts increasing from 32.48% in H1 2023 to 34.94% in H1 2024 [3] - Class I forklift sales grew 19.04% YoY, Class II increased 22.62%, and Class III surged 25.58% in H1 2024, demonstrating strong demand across product categories [3] Market Performance - Hangcha Group's stock price stood at 16.07 yuan as of August 21, 2024, with a total market capitalization of 21.049 billion yuan [3] - The company's 52-week price range was between 15.05 yuan and 34.49 yuan, with a monthly turnover rate of 0.56% [3]