① Huatie Emergency Q1 revenue and net profit continued to grow in double digits, while the company's expenses also showed a significant year-on-year increase; ② The next period will still be a period of rapid development of the aerial work platform industry, and growing demand will push the company to increase investment in aerial work platforms; ③ Huatie Emergency stated that the company has long been optimistic about the development potential of overseas business, and the Korean market is the first step in internationalization.
Financial Services Association, April 25 (Reporter Wang Bin) Thanks to the continued rise in the occupancy rate of aerial work platforms, Huatie Emergency (603300.SH) continued double-digit growth in revenue and net profit in the first quarter of this year. However, at the same time, period expenses, including sales expenses, management expenses, and financial expenses, also increased dramatically.
This evening, China Railway urgently released its report for the first quarter of 2024. According to the data, in the first quarter, the company achieved operating income of 1,105 billion yuan, an increase of 31% over the previous year; net profit attributable to shareholders of listed companies was 157 million yuan, an increase of 11.57% over the previous year. It is worth mentioning that the net cash flow from the company's operating activities increased 103.8% year-on-year to 666 million yuan during the same period.
China Railway Emergency said that the increase in revenue was due to the increase in the management scale of the company's aerial work platforms and other equipment during the reporting period, and the increase in rental revenue; the increase in net cash flow from operating activities was mainly due to the expansion of the company's business scale. At the same time, the company strengthened business repayment.
A CFA reporter noticed that in January-March of this year, the company's sales expenses, management expenses, and financial expenses were 119 million yuan, 50,3667 million yuan, and 129 million yuan respectively, up 29.73%, 34.41% and 31.32%, respectively. Dragged down by this, the consolidated gross margin for the same period was 43.02%, a year-on-year decrease of 3.19 percentage points.
Earlier, when surveyed by investment institutions, China Railway Emergency said that the next period will still be a period of rapid development for the aerial work platform industry, and it will be a period of strategic opportunity for the company to continuously enhance customer stickiness, consolidate core competitiveness, and accumulate scale advantages. The company will fully consider many factors such as market share, operating efficiency, and cash flow, maintain the procurement rhythm of aerial work platforms, and steadily increase its market share.
According to the announcement, by the end of 2023, the management scale of the company's aerial work platforms exceeded 120,000 units, an increase of 54% over the previous year, and the market share increased to 20%. In terms of performance, the company's aerial work platform revenue reached 3.107 billion yuan last year, an increase of 45.57% over the previous year. Fangzheng Securities Research Report predicts that by 2026, the company's aerial work platform holdings will reach 240,000 units, corresponding revenue of 6.92 billion yuan.
China Railway Emergency recently stated on the Investor Relations Interactive Platform that in 2023, the actual growth scale of the company's aerial work platform business exceeded the target set at the beginning of the year. Mainly, market demand continued to be strong. Continued growing demand prompted the company to increase investment in aerial work platforms. In 2023, the rental rate of aerial work platforms exceeded 85%, an increase of about 4 percentage points over 2022.
It is worth mentioning that China Railway Emergency established an overseas development department last year. According to the annual report, by the end of 2023, the company had successfully expanded its aerial work platform leasing business in South Korea and is expected to generate benefits in 2024. According to Huatie Emergency's official WeChat account, in March of this year, Huatie Hornet's aerial work platform equipment leasing business officially entered the Korean market and successfully held the opening ceremony of the Korean store.
Referring to plans to enter overseas markets, Huatie said that the company has long been optimistic about the development potential of overseas business, and that the Korean market is the first step in internationalization. The overseas market development plan includes not only mature markets such as South Korea, Japan, Europe and the US, but also emerging markets such as Southeast Asia and the Middle East, which have huge potential and room for growth.