Hangcha (SH:603298) ZHESHANG SECURITIES·2024-09-19 10:23Investment Rating - The investment rating for the company is maintained as "Buy" [5] Core Views - The company plans to establish manufacturing companies in Malaysia and Thailand to further expand its international business [2] - The internationalization process is accelerating, with the forklift industry experiencing high export growth [2] - The trend towards electrification in the industry is strengthening, with significant sales growth in electric forklifts [2] - The company's revenue and net profit for the first half of 2024 show substantial growth, driven by lithium battery forklifts and international business [2] - Future profit projections indicate continued growth, with expected net profits of 2.1 billion, 2.6 billion, and 3.1 billion for 2024, 2025, and 2026 respectively [2] Summary by Sections International Expansion - The company is setting up a subsidiary in Malaysia with a registered capital of 2 million USD, focusing on sales and services of forklifts and industrial vehicles [2] - In Thailand, the company plans to invest 20 million USD to establish a manufacturing company for forklifts and high-altitude vehicles, as well as lithium battery assembly [2] Industry Trends - The forklift industry remains robust, with China maintaining its position as the world's largest producer and market [2] - In August 2024, the industry sold 98,883 forklifts, a year-on-year increase of 1.26%, with exports growing by 11.6% [2] Electrification - The sales of electric forklifts have shown significant growth, with electric models accounting for 70.77% of total sales [2] - The company is strategically investing in key components for electric vehicles, enhancing its supply chain capabilities [2] Financial Performance - For H1 2024, the company reported revenue of 8.554 billion CNY, a 3.74% increase year-on-year, and a net profit of 1.007 billion CNY, up 29.29% [2][9] - The second quarter of 2024 saw revenue of 4.382 billion CNY, with a net profit of 628 million CNY, reflecting a 28.19% increase [2] Future Projections - Expected net profits for 2024, 2025, and 2026 are projected to grow by 22%, 24%, and 20% respectively, with corresponding P/E ratios of 12, 9, and 8 [2]