Hangcha (603298) Haitong Securities·2024-10-25 00:08Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company reported a steady increase in profitability, with a year-on-year revenue growth of 1.55% for the first three quarters of 2024, reaching 12.733 billion yuan, and a net profit growth of 21.20%, amounting to 1.573 billion yuan [6][9] - The company is accelerating its international expansion, particularly in Southeast Asia, by establishing subsidiaries in various countries to enhance its global sales and leasing network [7][9] - The company is expected to achieve a net profit of 2.024 billion yuan in 2024, reflecting a year-on-year growth of 17.65% [9][10] Financial Performance - For Q3 2024, the company reported a revenue of 4.179 billion yuan, a decrease of 2.65% year-on-year, while the net profit was 566 million yuan, an increase of 9.07% [6] - The gross margin for Q1-Q3 2024 was 22.67%, an increase of 2.45 percentage points year-on-year, and the net margin was 12.91%, up by 1.91 percentage points [6] - The company’s investment income for Q1-Q3 2024 was 335 million yuan, a year-on-year increase of 26.45% [6] Revenue and Profit Forecast - The company is projected to achieve revenues of 16.833 billion yuan in 2024, with a growth rate of 3.4% [10] - The expected earnings per share (EPS) for 2024 is 1.55 yuan, with a reasonable valuation range of 20.09 to 23.18 yuan per share based on a price-to-earnings (PE) ratio of 13-15 times [9][10] - The company’s revenue from forklifts and accessories is expected to grow at a compound annual growth rate (CAGR) of 3.50% from 2024 to 2026 [11] Market Position and Strategy - The company is positioned as a leading domestic forklift manufacturer, benefiting from a complete R&D, production, and sales system, which enhances its market share and performance resilience [11] - The ongoing shift towards automation in manufacturing is expected to drive demand for forklifts, with the global forklift market projected to grow at a rate of 4%-6% annually [10][11] - The company is focusing on enhancing its digital capabilities and expanding its product offerings in the intelligent logistics sector, which is anticipated to create significant growth opportunities [11]