The company is an intelligent internal logistics provider in all fields, and its business covers system+equipment manufacturing. The company started in the warehousing logistics vehicle and equipment industry, and mainly produces warehousing logistics vehicles and equipment such as electric forklifts (Class I-III) and aerial work platforms; after 16 years, the company entered the intelligent logistics field and achieved high development through outsourcing, SAVOYE from France, and achieved high development. At the end of '22, orders in this field were 6.5 billion yuan (excluding tax), which was twice the revenue of the business in that year.
High-quality export enterprises, global production to serve global customers. In '22, the company's overseas business revenue accounted for 60%, ranking first among listed companies in the same industry. Omnichannel+ customers are an important support for its global business. In addition to having various production bases in France, Malaysia, Vietnam, etc., the company has set up subsidiaries in North America, Europe, Russia, Singapore, etc., and has established contacts with top global customers such as LV and Siemens.
The growth model is against Toyota Industries, or it may become a beneficiary of the return of the US manufacturing industry. The similarities between the company and the global leader Toyota Kogyo include: (1) a comprehensive business layout of sales+services+logistics solutions; (2) deep involvement in the European and American markets and successful response to anti-dumping policies; (3) a rich product line through mergers and acquisitions, which emphasizes that local brands serve the local market. In the context of the return of the US manufacturing industry, the overseas infrastructure market is hot, demand for logistics systems and equipment is increasing, and the revenue growth rate of Toyota Industries in Europe and the US is accelerating. The company is expected to revive the growth of Toyota Industries and usher in a bright moment for exports.
Lithium electric forklifts rank at the top, embracing the tide of lithium electrification plus exports. The value of the domestic NEV industry gradually spilled over to forklifts. The lithium battery rate of domestic forklifts led the world by about 4 years, leading to a high increase in product exports. The company's lithium battery products are outstanding. The share of lithium electric forklifts ranked second in China in '21. At the same time, the company continued to optimize the product structure, focus on developing electric vehicles, and create new growth points.
Profit forecast and investment suggestions: The company is expected to achieve net profit of 491, 6.25, and 799 million yuan per share in 2023-2025, and EPS is 1.91, 2.42, and 3.10 yuan/share, respectively. The company was given 15xPE in 2023, corresponding to a reasonable value of 28.61 yuan/share, covered for the first time, and given a “buy” rating.
Risk warning: economic downside risk in major export regions; risk of exchange rate fluctuations, etc.