Investment Rating - The report assigns an "Accumulate" rating for Zhongli Co., Ltd. (603194) [1] Core Views - Zhongli Co., Ltd. is a global leader in electric warehouse forklifts, driving the transformation of material handling technology towards electrification, greening, and intelligence [2][16] - The company has a complete product line of warehouse forklifts and intelligent handling robots, with a strong market position in China and significant international presence [2][3] - The company is expected to benefit from the ongoing electrification trend in the forklift industry, with robust revenue and profit growth projected in the coming years [4][48] Summary by Sections Company Overview - Established in 2007, Zhongli Co., Ltd. focuses on the R&D, production, and sales of forklifts and intelligent handling robots, leading the industry in electrification and green development [2][16] - The company has maintained a leading market share in electric warehouse forklifts in China since 2013, with a strong international sales network covering North America, Europe, and Southeast Asia [2][16] Financial Performance - Revenue is projected to grow from 22 billion yuan in 2019 to 66 billion yuan in 2024, with a CAGR of 25% [2][26] - The net profit attributable to shareholders is expected to increase from 1.5 billion yuan in 2019 to 8.4 billion yuan in 2024, with a CAGR of 41% [2][26] - For the first three quarters of 2025, the company reported a revenue of 52 billion yuan, up 8.6% year-on-year, and a net profit of 6.9 billion yuan, up 5.5% year-on-year [2][26] Market Trends - The forklift industry is expected to grow at a CAGR of approximately 8% from 2015 to 2024, driven by investments in manufacturing and logistics, as well as the electrification trend [2][3] - The global market for balance-weight forklifts is projected to have significant growth potential, with the lithium battery penetration rate expected to increase [3][41] Competitive Advantages - Zhongli Co., Ltd. has a strong competitive edge due to its established brand, comprehensive product offerings, and significant international market share [3][41] - The company's gross profit margin has improved from 26.7% in 2022 to 29.7% in 2025, driven by scale effects and efficient management [28][41] - The company maintains a higher gross margin compared to domestic competitors, with a sales gross margin of 29.7% and a net profit margin of 13.3% [41][44] Future Outlook - The company is well-positioned to capitalize on the ongoing electrification and automation trends in the material handling industry, with expected growth in both domestic and international markets [4][48] - The strategic focus on intelligent logistics solutions and the development of autonomous handling equipment is anticipated to further enhance growth opportunities [3][4]