The company released its 2024 interim report
In the first half of 2024, the company achieved revenue of 3.47 billion yuan, +3.6% year-on-year, and realized net profit of 0.24 billion yuan, or +8.2% year-on-year. Looking at the second quarter alone, the company achieved revenue of 1.72 billion yuan, 3.6% year-on-year, and -1.8% month-on-month; realized net profit of 0.12 billion yuan, +6.2% year-on-year and +8.2% month-on-month.
Forklifts continued to grow, and the sector's gross margin increased year-on-year
In the first half of 2024, the company's forklift segment earned 1.82 billion yuan, +5.5% year-on-year; the intelligent logistics system segment earned 1.65 billion yuan, +1.3% year-on-year. In the first half of 2024, the company's comprehensive gross margin was 21.8%, -0.6pp; of these, the gross margin of the forklift sector was 24.2%, +2.0pp year on year; the gross margin of the intelligent logistics system sector was 19.1%, -3.4pp year on year. Q2 In a single quarter, the company's comprehensive gross margin was 21.9%, -2.1pp year over year, and +0.4pp month-on-month.
The expense ratio declined slightly during the period, and the net interest rate was basically stable
In the first half of 2024, the company's fee rate for the period was 13.2%, -1.1 pp year on year. The year-on-year decrease was mainly due to a year-on-year increase in exchange earnings; the net interest rate for the first half of the year was 6.8%, +0.2pp year on year. In the 2nd quarter of a single quarter, the company's expense ratio was 12.0%, -1.6pp year on year, -2.4pp; Q2, the company's net interest rate was 7.1%, flat year on year, +0.7pp.
Focus on overseas markets and adhere to the big car strategy
In the first half of 2024, domestic sales of Class 1 vehicles increased 19.0% year on year, Class 2 vehicles increased 22.6% year on year, Class 3 cars increased 25.6% year on year, Class 4/5 vehicles fell 7.0% year on year, and the electrification rate of balanced heavy forklifts increased to 32%. In the first half of 2024, total forklift sales in China reached 0.662 million units, up 13.1% year on year. Sales in the Chinese domestic market increased 9.9% year on year, export sales increased 19.6% year on year, and the share of domestic forklifts in the overseas market continued to increase. The company focuses on overseas markets, actively grasps the trend of electrification of large forklifts, and establishes a “big truck strategy” to enter the large forklift market. There is plenty of momentum for future growth.
Investment advice
We expect the company's 2024-2026 revenue to be $75.3, 84.5, and 9.45 billion yuan, respectively; net profit to mother for 2024-2026 will be 5.2, 6.2 billion yuan, and 7.2 billion yuan, respectively, +14%, +18%, and +17%; EPS for 2024-2026 will be 2.03, 2.40 and 2.79 yuan, respectively, and the 2024/8/21 stock price of 14.97 yuan will be 7, 6 and 5 times PE. The company focuses on overseas markets, and its heavy vehicle strategy conforms to industry trends, and there is plenty of momentum for growth. First coverage, giving a “buy” rating.
Risk warning
The risk of macroeconomic fluctuations, the risk of exports falling short of expectations, the risk of fluctuations in raw material prices, and increased risk of industry competition.