Investment Rating - The report maintains a "Buy" rating for the company, with a target price yet to be specified [3][12]. Core Insights - The company has signed a share acquisition agreement with TH Tong Heng Machinery, Malaysia's largest comprehensive equipment leasing company, to acquire 80% of its shares, which is expected to enhance market presence and operational synergies in Malaysia [1][2]. - The acquisition price is approximately RMB 300 million (around MYR 176 million), corresponding to about 6 times the target company's EBITDA, indicating a reasonable valuation given the target's strong profitability metrics [2]. - The target company is projected to achieve a compound annual growth rate (CAGR) of 31% in revenue from fiscal years 2021 to 2024, with EBITDA and net profit margins of 70% and 28.3% respectively for 2024, showcasing robust financial health [2]. Summary by Sections Company Overview - The report highlights the company's strategic move to deepen its operational footprint in Malaysia through the acquisition of a leading local player, which is expected to enhance its competitive edge and market share [1][2]. Financial Performance - The company's first-quarter operational summary indicates a rising rental rate for key equipment, with a rental rate of approximately 78% for aerial work platforms by the end of the quarter [3]. - The overseas business revenue has significantly increased, accounting for over 15% of total revenue, suggesting successful global expansion efforts [3]. Market Position - The company operates 579 outlets globally, with a slight reduction in domestic outlets but an increase in overseas outlets, indicating a strategic focus on international growth [3]. - The report anticipates net profits for the years 2025 to 2027 to be RMB 1.02 billion, RMB 1.15 billion, and RMB 1.3 billion respectively, with corresponding price-to-earnings (PE) ratios of 3.6, 3.2, and 2.8 times [3].