Hangcha (603298)2024-10-31 10:23Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [3][25]. Core Insights - The company is recognized as a leading player in the domestic forklift industry, with rapid growth in overseas operations [3][5]. - In the third quarter of 2024, the company's net profit attributable to shareholders increased by 9.1% year-on-year, indicating strong growth [4]. - The company has been actively expanding its international presence and enhancing its electric vehicle offerings, which has contributed to its improving profitability [5][6]. Financial Performance - For the first three quarters of 2024, the company reported total revenue of approximately 12.73 billion yuan, a year-on-year increase of 1.5%, and a net profit of about 1.57 billion yuan, up 21.2% year-on-year [4]. - The company’s revenue is projected to reach 16.90 billion yuan in 2024, with a year-on-year growth of 3.9%, and net profit is expected to be 2.03 billion yuan, reflecting a growth of 17.8% [7][25]. - The gross profit margin is forecasted to improve from 20.8% in 2023 to 23.1% in 2024 [7]. Internationalization and Electrification - The company has established over 10 overseas sales companies and service centers, significantly expanding its global marketing and after-sales service network [5]. - From 2020 to 2023, the revenue from overseas markets surged from 1.74 billion yuan to 6.54 billion yuan, with a compound annual growth rate of 55.3% [5]. - The company has launched a full range of high-pressure lithium battery forklifts, leading the industry in electrification efforts [5]. Future Outlook - The report anticipates a recovery in domestic forklift demand due to increasing policy support, alongside sustained growth in overseas markets [6][25]. - The company is expected to continue expanding its market share in the new energy forklift sector, driven by the transition from lead-acid to lithium battery solutions [5][25].