Hangcha (SH:603298) Haitong Securities·2024-09-19 03:10Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2]. Core Views - The company is accelerating its internationalization by establishing subsidiaries in Malaysia and Thailand, focusing on sales and after-market services [5][6]. - The company has made significant progress in enhancing its global manufacturing capabilities, which is crucial for competitiveness in the manufacturing sector [6]. - Revenue and profit forecasts indicate a steady growth trajectory, with expected revenues of 178.75 billion, 192.85 billion, and 206.18 billion yuan for 2024, 2025, and 2026 respectively, reflecting year-on-year growth rates of 9.85%, 7.89%, and 6.91% [6][10]. Summary by Sections Investment Information - The closing price as of September 18 is 18.55 yuan, with a market capitalization of 24.297 billion yuan [2]. Financial Performance - The company reported revenues of 16.272 billion yuan in 2023, with projections of 17.875 billion yuan in 2024, 19.285 billion yuan in 2025, and 20.618 billion yuan in 2026, showing a year-on-year growth of 9.8%, 7.9%, and 6.9% respectively [7][10]. - Net profit is expected to grow from 2.059 billion yuan in 2024 to 2.605 billion yuan in 2026, with growth rates of 19.7%, 13.0%, and 12.0% [6][10]. Valuation Metrics - The company is assigned a PE valuation range of 12-14 times for 2024, translating to a reasonable share price range of 18.87 to 22.01 yuan [6][10]. - The projected PB ratio for 2024 is between 2.41 and 2.81 times, compared to peer companies with a PB range of 1.28 to 1.81 times [6][10]. Competitive Positioning - The company has established subsidiaries in key markets such as Japan, Indonesia, and France, enhancing its sales network and after-market service capabilities [5][6]. - The establishment of the Malaysian subsidiary is expected to improve global marketing resource allocation and brand image [5].