The trend of electrification is remarkable. The forward-looking layout of new energy products shows advantages. Sales of Class I, II, and III trucks all achieved year-on-year growth in the first half of 2024. The share of electric forklifts has reached 70.77%, and the proportion of electrification among counterweight forklifts has reached 31.97%. The competitiveness of models represented by electric forklifts, especially new energy lithium battery forklifts, has improved markedly, and the trend of electrification is remarkable. The company keenly grasps industry trends, vigorously implements the “new energy strategy”, seizes “dual carbon” development opportunities, plans a new energy industrial vehicle product system represented by lithium batteries, hydrogen energy, and hybrid power, forwardly lays out supply chain systems for key components such as lithium batteries, drive motors, and vehicle electronic control, continues to invest in high-intensity R&D and investment in new energy industrial vehicle core technology, and build a future factory for the manufacture of new energy forklift parts and complete machines. The company has now mastered many core technologies for new energy industrial vehicles, and is also the first in the industry to launch several industry-first innovative energy products, making it one of the most comprehensive manufacturers of new energy products in the industry. Relying on the competitive first-mover advantage formed in new energy products, the company will consolidate its position as an industry leader.

Deeply cultivate the international market, and overseas performance is growing steadily

In recent years, the company has successively invested in the establishment of more than 10 direct sales companies in the United States, Germany, the Netherlands, Brazil, Thailand, Australia and other countries to achieve full coverage of important global industrial vehicle product markets such as Europe, North America, South America, Australia, Southeast Asia, and Oceania. In the first half of 2024, the company accelerated the internationalization process, investing in setting up sales flagship stores in Japan and Indonesia, respectively, and investing in the establishment of Hangcha Europe Leasing Co., Ltd. to expand overseas leasing business.

On September 18, 2024, the company held the 15th meeting of the 7th board of directors to review and pass two proposals to invest in the establishment of Hangcha Malaysia Co., Ltd. and Hangcha Group Thai Manufacturing Company in Malaysia and Thailand, respectively, to further optimize the industrial layout and enhance the company's competitiveness in the international market. From 2020 to 2023, the share of the company's export revenue increased year by year, from 15.23% to 40.16%. It is expected that overseas markets will contribute more to the company's revenue in the future.

Build an intelligent manufacturing gigafactory to stimulate new production momentum

The company thoroughly implements intelligent manufacturing, innovates production methods based on intelligent manufacturing process technologies such as digital twins, 5G application technology, industrial Internet, intelligent welding, automatic coating, etc., drives production process re-engineering with data, and continues to build smart gigafactories.

The company has now successfully built an intelligent manufacturing gigafactory with the Qingshan and Hengfan parks as the core, covering the collaborative development of multiple industries such as the parts industry, the industrial vehicle industry, the smart logistics industry, and the modern service industry. The supply chain, industrial chain, and innovation chain are deeply integrated, and the characteristics of Hangcha. In May 2024, the new Hangcha factory in Baoji was completed and the intelligent and environmentally friendly large-scale conveyor commissioning ceremony was successfully held. The Hangcha Hengfan Science Park Phase IV Hangcha Intelligent Production Base Project with an annual output of 10,000 sets of automation equipment was fully started, further expanding the scale of production capacity and promoting the company's quality and accelerated development.

Profit forecasting

The company has been deeply involved in the forklift industry for many years. As a leading enterprise in the domestic industry, it has established a competitive advantage by laying out new energy products and smart logistics solutions in advance. At the same time, the overseas market has broad prospects and sufficient growth momentum. The company's revenue for 2024-2026 is 17.848, 19.993, and 22.577 billion yuan respectively, and EPS is 1.54, 1.77, and 1.97 yuan respectively. The current stock price corresponds to PE at 13.2, 11.5, and 10.3 times, respectively, giving it a “buy” investment rating.

Risk warning

Overseas business risk; industry competition risk; management risk due to expansion of scale; risk of exchange rate fluctuations.