Hangcha (603298)2024-10-23 03:00Investment Rating - The report maintains a "Buy" rating for Hangcha Group (603298) [1] Core Views - The company reported a revenue of 12.73 billion yuan for the first three quarters of 2024, a year-on-year increase of 1.6%, and a net profit attributable to shareholders of 1.57 billion yuan, up 21.2% year-on-year. However, the revenue for the third quarter decreased by 2.7% year-on-year, while the net profit increased by 9.1% [1] - The gross margin for the first three quarters of 2024 was 22.7%, an increase of 2.5 percentage points year-on-year, driven by an increase in the sales proportion of electric forklifts and a decrease in raw material prices [1] - The company is accelerating its international expansion, with a focus on developing self-operated channels and achieving significant progress in marketing and channel construction [2] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 12.73 billion yuan and a net profit of 1.57 billion yuan, with a gross margin of 22.7% and a net margin of 12.9% [1] - The third quarter gross margin was 25.2%, reflecting a year-on-year increase of 2.9 percentage points [1] - The company expects net profits for 2024-2026 to be 2.02 billion yuan, 2.27 billion yuan, and 2.55 billion yuan, respectively, with a compound annual growth rate of 14.0% [2] Market Dynamics - The domestic forklift demand has faced pressure, with a year-on-year decline of 1.8% in the third quarter, while exports grew by 20.4% [2] - The company has established ten overseas subsidiaries, achieving coverage in key global markets for industrial vehicle products [2] Profitability and Cost Structure - The company’s comprehensive gross margin has improved due to the low prices of raw materials and an increase in overseas revenue and lithium battery forklift sales [1] - The financial expense ratio increased due to exchange rate fluctuations, with total expenses for the first three quarters at 11.0%, up 1.8 percentage points year-on-year [1]