Hangcha Group Co.Ltd(603298) (603298)
event
Recently, Hangcha new energy, a wholly-owned subsidiary of the company, and new hydrogen power signed a procurement contract for 100 hydrogen fuel cell forklifts for the second time.
Key investment points
The company signed another large order for hydrogen fuel cell forklifts, actively arranged new energy forklifts and transformed the growth power
The company took the lead in making a forward-looking layout of hydrogen fuel cell application technology in the Chinese industry. As early as 2016, the company has started to carry out preliminary research on hydrogen fuel cell application technology, and officially approved the research and development in 2018. In August 2020, the company’s hydrogen fuel cell forklift R & D and production base project was signed and implemented in Tianjin Port Co.Ltd(600717) free trade zone. After Hangcha new energy landed in the Tianjin Port Co.Ltd(600717) Free Trade Zone, it carried out the R & D of a number of hydrogen fuel cell forklifts with new hydrogen power. The technical teams of the two sides conducted in-depth cooperation on the safety, reliability and applicability of the whole machine and hydrogen fuel cells, and through a large number of rigorous tests, verification and continuous optimization of the whole machine and parts, It has been rapidly improved in terms of technology iteration and product maturity.
On March 5 this year, Hangcha new energy and new hydrogen power signed the order for the first batch of 100 hydrogen fuel cell forklifts, which were all delivered before the end of April. At present, it has officially served Yanshan Petrochemical and other companies. This time, 100 orders were signed again, which further expanded the company’s leading edge and opened a new chapter in the batch application of hydrogen fuel cell forklifts in China. Hydrogen fuel forklift is only an epitome of the company’s new energy strategy. The company has made great efforts to invest in new energy forklift. While ensuring the product quality and market reputation of internal combustion vehicles, the company has increased the technical investment of electric forklift, preempted the layout of a full range of electrification technologies, overcome the technical problems of large tonnage electric forklift replacing internal combustion vehicles, and the market position of lithium electric forklift continues to lead the whole industry.
Strengthen the “post market” construction of forklift sales, and the market share of balance weight forklift sales is expected to continue to increase,
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 73.84% to 95.64%. 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 the leasing market and network construction.
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.
Profit forecast and valuation
It is estimated that the net profit of the 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 15 / 12 / 10 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
