LH(SH:600099) Minsheng Securities·2024-11-03 01:42Investment Rating - The report assigns a "Neutral" rating to the company for the first time [4]. Core Views - The company is expected to experience a recovery in its main business, with projected net profits for 2024-2026 being 0.14 billion, 0.18 billion, and 0.23 billion respectively, reflecting growth rates of 6.3%, 23.8%, and 29.8% [2][34]. - The company has a stable shareholding structure, with the actual controller holding 42.1% of the shares [11]. - The company has a long history and a well-established business layout, focusing on four main business segments: special vehicles (ATVs), agricultural machinery, firefighting machinery, and motorcycles [2][8]. Financial Performance - The company's revenue has shown slight fluctuations but has returned to an upward trend, with revenue increasing from 0.578 billion in 2019 to 0.695 billion in 2023, representing a CAGR of 4.72% [12]. - In the first three quarters of 2024, the company achieved revenue of 0.762 billion, a year-on-year increase of 44.36%, driven by strong export demand for motorcycles and special vehicles, as well as successful market expansion for new agricultural machinery products [2][12]. - The company's net profit attributable to shareholders increased from 0.06 billion in 2019 to 0.09 billion in 2023, with a CAGR of 10.67% [12]. Business Structure and Product Layout - The company has diversified its product offerings, with a focus on special vehicles, agricultural machinery, firefighting machinery, and motorcycles [2][18]. - The ATV market is export-oriented, with over 90% of products being exported [21]. - The agricultural machinery market is vast, with the company focusing on various products including rice transplanters and self-propelled harvesters [23][35]. Revenue and Profitability Forecast - The report forecasts revenue growth for the motorcycle and special vehicle segment at 25%, 20%, and 15% for 2024-2026 [34]. - Agricultural machinery revenue is expected to grow by 10% annually during the same period [35]. - The firefighting machinery segment is projected to see a 5% annual growth in revenue [36].