Hangcha Group Co.Ltd(603298) (603298)
event
The company held the 25th meeting of the 6th board of directors, deliberated and adopted the proposal on capital increase of Hangcha Group Co.Ltd(603298) Leasing Co., Ltd. and the proposal on not downward amending the conversion price of “hangfork convertible bonds”.
Key investment points
The company increased the capital of forklift leasing subsidiary to strengthen the “post market” layout and network construction
Since its establishment, Hangcha leasing, the holding subsidiary of the company, has developed rapidly in business scale and expanded an important development channel of the company’s post market. In order to further release the market vitality, the company plans to increase the subscribed capital of Hangcha leasing by RMB 250 million, and the registered capital of Hangcha leasing is changed from RMB 50 million to RMB 300 million. After the capital increase is completed, The company holds a total equity of 286.92 million yuan of Hangcha leasing, and the shareholding ratio has increased from 74% to 96%. The actual capital contribution of the above capital increase will be completed step by step according to the operating capital demand of Hangcha leasing. The funds are mainly used to expand the business scale, reduce the asset liability ratio, broaden other financing channels and lines such as banks, and strengthen the layout of leasing market and network construction.
As a large forklift country, in the past two decades, China’s forklift manufacturing, production and sales have always been in the forefront of the world, and most enterprises operate in the dealer mode. However, foreign countries are different from China. Forklift leasing has been very common. It is said that the rental penetration rate in Europe and the United States accounts for 70% and the sales account for only 30%. Increasing the proportion of forklift leasing business will help the company avoid many risks in forklift sales and provide power for the sustainable development of the company. The capital increase of Hangcha leasing is conducive to the transformation of the company from single product sales to service sales, and has made a breakthrough in the “post market” of forklift sales.
The market share of balance weight forklift sales is expected to continue to increase, actively layout new energy forklift and transform the growth power
From January to October 2021, the sales volume of forklift trucks in the whole industry was 930000, with a year-on-year increase of 45%; From September to October 2021, the sales volume of forklift industry in China was 80000 units, with a year-on-year increase of 7% and a month-on-month decrease of 8% compared with August to September. The year-on-year growth rate slowed down slightly under the high base. The forklift industry achieved export sales of 420000 units from January to September, with a year-on-year increase of 78%; From August to September 2021, the export sales volume of forklift industry was 50000 units, with a year-on-year increase of 59% and a month on month increase of 16% compared with July to August. The export end of forklift showed a warming trend. The total sales volume of forklift industry in the whole year is expected to exceed 1 million units, achieving a growth rate of more than 25%, and the proportion of electric forklifts is increasing, among which class III vehicles are expected to achieve a high growth of 50%.
Hangcha has continuously optimized the technical transformation and production line planning, and has achieved an annual production capacity of more than 300000 units, reaching a new record. It is expected that the growth rate of the company’s balance weight forklift is expected to be higher than that of the whole industry, and the share of private leading cities is expected to continue to increase. The company has invested heavily in new energy forklifts. While ensuring the product quality and market reputation of internal combustion vehicles, the company has increased the technical investment in lithium and hydrogen energy forklifts, preempted the layout of a full range of motorized products, overcome the technical problems of large tonnage forklifts replacing internal combustion vehicles, and the market position of lithium forklifts continues to lead the whole industry.
Profit forecast and valuation
It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 1.02/12.6/1.54 billion, with a year-on-year increase of 21% / 24% / 23%, corresponding to EPS of RMB 1.17/1.45/1.78 and current PE of 14 / 12 / 9 times, maintaining the “buy” rating.
Risk statement
Manufacturing investment is lower than expected; The price of raw materials fluctuates greatly; Deterioration of industry competition pattern
