Description of the event
The company released its three-quarter report. 2023Q1-3 achieved total operating income of 5.338 billion yuan, an increase of 14.05% over the previous year; realized net profit of 359 million yuan, an increase of 23.28% over the previous year; and realized net profit of 310 million yuan, an increase of 2.74% over the previous year.
Based on this calculation, 2023Q3 achieved total operating income of 1,987 billion yuan, an increase of 28.95% over the previous year; realized net profit of 137 million yuan, an increase of 45.36% over the previous year; and realized net profit after deducting 119 million yuan from the mother, an increase of 5.28% over the previous year.
Incident comments
Revenue growth and cost control were strengthened, and the company's performance returned to the rapid growth track. 2023Q3 China's forklift sales have clearly recovered, with domestic sales growth reaching 14.4% (23Q2 is 10.4%); export sales growth rate has reached 13.7% (23Q2 is 10.1%). Driven by increased forklift sales growth and smart logistics system order delivery confirmation, the company's revenue growth rate increased 16.63 pct over month. In terms of profitability, 2023Q3 achieved a gross profit margin of 19.37%, a year-on-year decline of 1.94pct, a year-on-year decline of 4.69%; a net sales profit margin of 6.75%, a slight increase of 0.90% year-on-year, and a slight decrease of 0.42pct over the previous year. Increased cost control is an important driving factor for narrowing the month-on-month difference in gross margin and achieving a slight increase in net profit margin. The 23Q3 company's sales expense rate/management expense rate/R&D expense ratio were 3.2%/4.1%/3.3% respectively; the year-on-year decline was 1.3pct/1.0pct/1.0pct, and the month-on-month decline was 1.5pct/1.2pct/0.6pct, respectively, which had an obvious effect on profitability. Against the backdrop of revenue growth and increased cost control, the company's performance growth rate turned negative to positive, returning to the rapid growth track.
There are plenty of on-hand orders, and the level of repayment has declined. With the integration of the company's resources and the implementation of the strategic layout of the global market, the company's industrial chain continues to expand, the number of controlled subsidiaries is rapidly increasing, the scale of business revenue and business coverage area continues to expand, and the number of various order items around the world continues to increase. As of 2023Q3, the company's contract debt was 2.44 billion yuan, a slight decrease from the same period last month, and the number of orders in hand was full. In terms of repayment, the revenue ratio of 2023Q3 companies was 77.7%, which was a decline from the same period last month, and there is room for improvement in the level of repayment.
Continue to promote the truck strategy to optimize product structure, improve operational efficiency, and promote the healthy development of logistics business. 2023H2, the company continues to vigorously implement the big car strategy. By expanding the production capacity of large vehicles, fully supporting measures such as improving the serialization and hierarchical research and development of large vehicle products, and adjusting the domestic and international marketing system for large vehicles, the company has promoted rapid growth in large vehicle sales and optimized product structure. In terms of smart logistics integration business, the company has achieved effective control and improvement of domestic and overseas subsidiaries through incentive policies, team optimization, talent introduction, capacity expansion, optimization and collaboration. As operating efficiency continues to improve, it is expected to promote healthy business development; at the same time, the company actively plans service operations, lays out new growth points in the future, and lays the foundation for long-term development.
The company is expected to achieve net profit of 502 million yuan and 618 million yuan respectively from 2023-2024, corresponding to PE 10 times and 8 times, respectively, and maintain the “buy” rating.
Risk warning
1. Economic downturn risks in major export regions;
2. Risk of exchange rate fluctuations.