Hangcha Group (603298): Market share continues to increase, product structure improves, gross profit rises

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Hangcha Group (603298): Market share continues to increase, product structure improves, gross profit rises

Hangcha Group issued an interim report, with revenue of 46 in the first half of the year.

1ppm, an increase of 6 per year.

3%, net profit attributable to shareholders of listed companies.

4.8 billion, an increase of 10 in ten years.

4%, deducting non-attribution to net profit 2.

8.7 billion, an annual increase of 6.

1%, under the downward pressure of the industry, the performance still achieved a solid growth exceeding the industry average.

The operating quality continued to improve, with net operating cash flow in the first half of the year.

Six ten percent, a 62% increase in one year.

The downward pressure on the industry increased in the second quarter, and the share of Hangcha City increased against the trend.

In the first half of the year, the total sales volume (including exports) of the entire industry was about 30.

660,000 units, a drop of about 0 a year.

31%, especially since the second quarter, the industry sales volume has been negative for three consecutive months.

The sales volume of Hangcha Group is expected to be about 7 in the first half of the year.

50,000 units, a year-on-year increase of more than 10%, the second quarter of a single quarter increased by more than 5% per year, market share continued to increase compared to the first quarter, close to 25%.

In the second quarter, the revenue of Hangzhou Fork in the single quarter was 24 million, which was basically the same as the same period last year.

Three types of vehicles are still growing, and the first type is the strongest point of Hangzhou fork.

In terms of sales by model, the third-category vehicle is still the fastest growing, with a growth rate of more than 60%. However, due to the unit price of the third-category vehicle, its contribution to revenue is small.

In the first class of vehicles with the highest unit price and the highest technical requirements, the sales volume of Hangcha exceeded 7,000 units, increasing by more than 10% per year, and the growth rate far exceeded that of the industry1.

4%, the first-class car has been the dominant product of Hangcha. Since 19 years, the introduction of high-end XC series has continued to increase the advantage.

It is estimated that in the first half of the year, Hangzhou forklift sales will be about 2%, and the industry will decline by 3.

The 7% sluggish sales of internal combustion vehicles also reflects the current slump in manufacturing investment.

Gross profit margin increased steadily, with a single quarter gross profit margin of 21 in the second quarter.

5%.

In the first half of the year, the company’s comprehensive gross profit margin was 21%, an increase of 0 from the same period last year.

5pct, of which the gross profit margin in the second quarter was 21.

5%, a month-on-month increase of 1 each year.

2/0.

4pct.

The increase in gross profit margin, in addition to the company’s improvement of production efficiency through lean management, intelligent manufacturing, and price fluctuations of raw materials, is mainly due to improved product structure and higher proportion of high-end product series (the average minimum of X series is higher than that of internal combustion vehicles of the same tonnage)(About 30%, XC series is 50% higher than the same tonnage electric fork).

In the first quarter of 19th, the IPO investment project-50,000 electric forklift workshops were formally put into operation. It is expected that by the end of 19, the overall production capacity will reach 200,000 units. The new workshops with higher scale effect and efficiency are expected to jointly promote the improvement of gross profit margin. It is estimated thatThe company’s gross profit margin will continue to increase steadily in the second half of 2019.

Cash flow increased significantly.

Net operating cash flow in the first half of the year 4.

USD 600 million, a year-on-year increase of 62%, of which the second quarter net operating cash flow2.

3.8 billion US dollars, net-to-present ratio continued to be less than 1, under the industry’s downward environment, cash flow still increased, reflecting the company’s bargaining power in the upstream and downstream of the 武汉夜网论坛 industry chain.

The focus will be on the North American market.

North America is one of the three traditional markets for forklift trucks, but Chinese brands have had a very low penetration rate in the United States before. In 2018, Hangzhou Fork established a North American company. With the cooperation of major shareholder Superstar Group, Hangzhou Fork will focus on developing the North American market in 2019.New growth points. Although the export growth rate of Europe and the United States is expected to improve in 2019, the North American market will be an important overseas market for Hangcha in the future.

Performance forecast and investment advice.Although it is a traditional capital product, from the perspective of historical data, the expectations of forklifts are much smaller than other machinery and equipment. The global compound growth rate of forklifts from 2008 to 2017 was 4.

1%, slightly higher than the growth rate of GDP, while domestic growth will be higher due to the trend of automation substitution.

Despite the short-term fluctuations in industry sales caused by the trade war, the growth rate of the forklift industry is expected to remain stable before.

In the context of emissions upgrading, electrification, and intelligence, the advantages of leading companies continue to manifest, and the city’s share has further increased.

We predict that in the full year of 2019, Hangzhou fork revenue will be 9.1 billion, which will be attributed to the mother’s net profit6.

2.2 billion, corresponding to the 19-year PE assessment11.

5 times, it is estimated to exceed the average level of international forklift companies. If there is a dispute, it is estimated that there is room for repair, and it is highly recommended!

Risk warning: The overall sales volume of forklifts and the sales volume of parts and components systematically overlap, and the prices of raw materials have increased significantly.