Hangcha (603298) ZHESHANG SECURITIES·2024-10-22 10:03Investment Rating - The investment rating for the company is maintained as "Buy" [2][4][17]. Core Views - The company's performance in the first three quarters of 2024 showed a year-on-year revenue growth of 1.55%, reaching 12.733 billion yuan, while the net profit attributable to shareholders increased by 21.20% to 1.573 billion yuan, driven by the rapid growth of lithium battery new energy forklifts and international business, along with favorable factors such as declining raw material prices [1][2]. - The internationalization of the forklift industry is accelerating, with the company achieving a 30% year-on-year increase in overseas revenue, which now accounts for 40% of total revenue [1][2]. - The trend towards electrification in the industry continues to strengthen, with significant sales growth in electric forklifts, and the company is proactively positioning itself in key components such as lithium batteries and electric control systems [1][2]. Summary by Sections Financial Performance - In Q1-Q3 2024, the company achieved a revenue of 12.733 billion yuan, a year-on-year increase of 1.55%, and a net profit of 1.573 billion yuan, up 21.20% [1][10]. - The gross margin for Q1-Q3 2024 was 25.24%, an increase of 2.87 percentage points year-on-year, while the net profit margin was 13.70%, up 0.9 percentage points year-on-year [1][11]. - The company expects net profits for 2024-2026 to be 2.1 billion, 2.4 billion, and 2.8 billion yuan, respectively, with corresponding PE ratios of 11x, 9x, and 8x [2][7]. International Expansion - The company plans to establish a subsidiary in Malaysia and a manufacturing company in Thailand to further expand its international business [2]. - The forklift industry in China remains the largest globally, with a total sales volume of 106,002 units in September 2024, a year-on-year increase of 6.1%, while export sales grew by 28.5% [1][12][14]. Electrification Trends - The sales of electric forklifts have shown significant growth, with electric balance heavy-duty forklifts (Class I) increasing by 19.04%, and electric walk-behind warehouse forklifts (Class III) growing by 25.58% [1][2]. - Electric forklifts now account for 70.77% of total forklift sales, indicating a strong competitive position in both domestic and international markets [1][2].