Hangcha (603298) Soochow Securities·2024-10-23 05:08Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company's Q3 2024 results show a year-on-year increase of 9.1% in net profit attributable to shareholders, with a continued upward trend in gross margin [1][2] - Domestic demand is under pressure, leading to a slowdown in revenue growth, with Q3 revenue declining by 2.7% year-on-year [2] - The company is expected to maintain steady growth in the medium term, supported by demand from the manufacturing and logistics sectors, as well as ongoing global expansion efforts [4] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved total revenue of 12.7 billion yuan, a year-on-year increase of 1.6%, and a net profit of 1.57 billion yuan, up 21.2% year-on-year [2][11] - In Q3 alone, the company reported revenue of 4.2 billion yuan, down 2.7% year-on-year, while net profit was 570 million yuan, reflecting a 9.1% increase [2][11] Profitability Metrics - The gross margin for Q3 2024 was 25.2%, an increase of 2.9 percentage points year-on-year, while the net profit margin was 13.7%, up 0.9 percentage points [3] - The company’s sales expense ratio increased to 11.8%, up 2.2 percentage points year-on-year, with specific increases in sales, management, R&D, and financial expense ratios [3] Market Outlook - The report suggests that the company should be attentive to the recovery trend in domestic demand driven by macroeconomic policies [4] - The global forklift market is estimated to be around 130 billion yuan in 2023, with the company holding only about 5% market share, indicating significant growth potential [4] - The company plans to establish a leasing company in Europe and a sales and leasing company in Malaysia, along with a manufacturing facility in Thailand, to enhance its global footprint [4] Earnings Forecast - The net profit forecasts for 2024-2026 have been adjusted to 2.05 billion, 2.30 billion, and 2.54 billion yuan respectively, with corresponding P/E ratios of 14, 13, and 12 times [4]