HUATIE(SH:603300) Tianfeng Securities·2024-08-23 08:30Investment Rating - The report maintains a "Buy" rating for the company, with a target price reflecting a potential upside of over 20% within the next six months [6][14]. Core Insights - The company achieved a revenue of 2.359 billion, representing a year-on-year growth of 21.68%, while the net profit attributable to the parent company was 335 million, up 3.03% year-on-year [1]. - The change in the actual controller to state-owned capital is expected to alleviate financial cost pressures and enhance operational efficiency [1]. - The average rental rate for aerial work platforms was 75.89%, down 5.97 percentage points year-on-year, indicating a decline in rental performance [2]. - The company’s equipment holdings increased significantly, with 151,300 aerial work platforms owned, marking a growth of 24.92% compared to the end of the previous year [3]. Financial Performance Summary - For the first half of 2024, the company reported a gross margin of 43.0%, a decrease of 2.25 percentage points year-on-year, with a net profit margin of 14.73%, down 2.75 percentage points year-on-year [4]. - The company’s cash flow from operations improved significantly, with a net cash flow of 1.148 billion, an increase of 521 million year-on-year [4]. - The financial forecast indicates a projected revenue growth rate of 21.08% for 2024, with net profit expected to reach 851 million, reflecting a growth rate of 6.27% [5][10]. Equipment and Asset Management - The company’s light asset management scale has steadily increased, with over 36,000 units managed, up approximately 17,000 units from the previous year [3]. - The partnership with Zhejiang Dongyang City Investment has progressed smoothly, with over 13,000 units delivered, indicating a strong collaborative effort in expanding equipment availability [3]. Market Position and Strategy - The company has expanded its offline channels, adding 56 new outlets, bringing the total to 330, with a focus on first and second-tier cities [2]. - Online channels generated over 70 million in revenue, reflecting a year-on-year growth of 29%, showcasing the effectiveness of digital sales strategies [2].