Hangcha (603298) HUAXI Securities·2024-10-22 06:03Investment Rating - The report maintains a "Buy" rating for the company [7]. Core Views - The company's revenue for the first three quarters of 2024 reached 12.73 billion yuan, a year-on-year increase of 1.6%, while the net profit attributable to shareholders was 1.57 billion yuan, up 21.2% year-on-year [2]. - The comprehensive gross margin for the first three quarters of 2024 was 22.7%, an increase of 2.5 percentage points year-on-year, with a net profit margin of 12.9%, up 1.9 percentage points year-on-year [3]. - Domestic demand is expected to rebound, supported by government policies, with the company benefiting from the general equipment market for material handling [4]. Summary by Sections Financial Performance - In Q3 2024, the company achieved revenue of 4.18 billion yuan, a decrease of 2.7% year-on-year and 4.6% quarter-on-quarter, while net profit was 570 million yuan, an increase of 9.1% year-on-year but down 9.8% quarter-on-quarter [2]. - The company adjusted its revenue forecasts for 2024-2026 from 17.09 billion, 18.71 billion, and 20.52 billion yuan to 16.42 billion, 17.98 billion, and 19.74 billion yuan, respectively, while raising EPS forecasts for the same period [5]. Market Dynamics - The domestic market for forklifts saw a 9.9% year-on-year increase in sales, with total forklift sales in China reaching 662,000 units, a 13.1% increase year-on-year [4]. - The electric forklift penetration rate increased to 32%, indicating a shift towards electrification in the industry [4]. Valuation Metrics - The estimated P/E ratios for 2024, 2025, and 2026 are 11, 11, and 10 times, respectively, based on the closing price of 17.32 yuan on October 21, 2024 [5].