Hangcha (SH:603298) GF SECURITIES·2024-10-23 05:08Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company has demonstrated stable revenue growth, achieving operating income of 12.733 billion yuan in the first three quarters, a year-on-year increase of 1.55%, and a net profit attributable to shareholders of 1.573 billion yuan, up 21.2% year-on-year [1]. - The increase in overseas sales and the rising share of lithium battery products are driving continuous improvement in profitability, with a gross margin of 22.67% and a net margin of 12.35% for the first three quarters [1]. - The company is enhancing its international presence and lithium battery product offerings, with plans to establish subsidiaries in Malaysia and Vietnam, and a manufacturing facility in Thailand, which is expected to produce 10,000 units annually [1]. - The domestic penetration rate of lithium battery forklifts is increasing, with electric forklift sales in China rising by 22.3% year-on-year [1]. - The company is actively advancing its smart logistics segment, having developed a range of AGV products [1]. - Profit forecasts indicate that net profit attributable to shareholders is expected to reach 2.03 billion yuan in 2024, 2.28 billion yuan in 2025, and 2.64 billion yuan in 2026 [2][1]. - The report estimates a reasonable value of 23.24 yuan per share based on a 15x PE ratio for 2024 [1][3]. Summary by Sections Financial Performance - For the first three quarters, the company reported operating income of 12.733 billion yuan and a net profit of 1.573 billion yuan, with a gross margin of 22.67% and a net margin of 12.35% [1]. - The forecast for operating income is 16.820 billion yuan in 2024, with a growth rate of 3.4% [2]. - The expected net profit for 2024 is 2.029 billion yuan, reflecting an 18% growth rate [2]. Market Position and Strategy - The company is focusing on international expansion and enhancing its lithium battery product line, which is expected to improve its competitive edge in the global market [1]. - The report highlights the company's strategic investments in Southeast Asia to bolster its global marketing resources [1]. Valuation - The report assigns a target price of 23.24 yuan per share, based on a 15x PE ratio for 2024, indicating potential upside from the current price of 17.32 yuan [3].