Hangcha (603298)2024-10-22 08:03Investment Rating - The investment rating for the company is "Buy" with a target price of 23.66 RMB [5][8]. Core Views - The company reported a slight decline in revenue for Q3 2024, with a year-on-year decrease of 2.65% and a quarter-on-quarter decrease of 4.64%, totaling 4.179 billion RMB. However, the adjusted net profit increased by 9.07% year-on-year to 566 million RMB [1]. - The gross profit margin reached a record high of 25.24% in Q3 2024, up 2.90 percentage points year-on-year, driven by optimized steel costs [2]. - The company is expanding its international presence by establishing a new manufacturing base in Thailand, which aims to enhance its supply chain stability and risk management capabilities in the global market [3]. - Plans to set up leasing companies in Vietnam and Malaysia are underway, which will further improve the company's overseas sales and leasing network [4]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 12.733 billion RMB, reflecting a year-on-year growth of 1.55%. The net profit attributable to the parent company was 1.573 billion RMB, up 21.20% year-on-year [1]. - The gross profit margin for the first three quarters of 2024 was 22.67%, an increase of 2.48 percentage points year-on-year [2]. Expansion Plans - The new manufacturing facility in Thailand is projected to have an annual production capacity of 10,000 units, including various types of forklifts and aerial work platforms [3]. - The establishment of leasing companies in Vietnam and Malaysia is expected to enhance the company's global marketing resource allocation and brand image [4]. Profit Forecast and Valuation - The profit forecast for 2024-2026 has been adjusted, with expected net profits of 2.024 billion RMB, 2.219 billion RMB, and 2.397 billion RMB respectively. The target price is based on a 14x PE valuation for 2025 [5].