Domestic forklift leading, rich product structure, overall steady growth of performance

Hangzhou Fork Group has been focusing on forklift industry for many years, with industrial vehicles as the core. The main products include 1-48 tons internal combustion forklift, 0.75-48 tons electric forklift and a number of AGV intelligent industrial vehicles, with tens of thousands of specifications and varieties. At the same time to provide customers with intelligent logistics overall solution and including product parts sales, repair, leasing, remanufacturing and other industrial vehicle aftermarket business. Benefiting from the stability of the domestic economy and the improvement of overseas markets, the company's revenue scale continued to increase steadily and its profitability improved overall. In 2023, H1 company achieved revenue of 8.222 billion yuan, an increase of 9.27%, while in terms of profit, due to the decline in raw material prices and the continuous optimization of the company's product structure, the company's net profit increased by 71.53%. According to the latest announcement of the company, from January to September 2023, the revenue was 12.515 billion yuan (+10.12%), and the net profit was 1.305 billion yuan (+74.89%).

The forklift industry has high growth attributes, and electrification is an inevitable trend

The demand of the forklift industry is greatly affected by the manufacturing and logistics industry, but because the downstream is more dispersed, it will not be affected by the cycle of a single industry. In the long run, the demographic dividend is gradually fading, and "machines for people" is the core logic. Therefore, the forklift industry has high growth attributes. The economic benefits of electric forklift under the "double carbon" policy are remarkable. The electric penetration rate of domestic forklift trucks has steadily increased, and the electric penetration rate (excluding the third class vehicles) is 28.6% in 2022, and we expect it to reach 40% in 2025.

The company accelerated the layout of lithium and hydrogen fuel forklifts, and the overseas market is expected to accelerate the expansion

The environmental protection and cost advantages of lithium batteries are more obvious, and they are high-quality substitutes for lead-acid batteries. Because hydrogen fuel cells are truly zero-pollution, efficient and durable, they are favored by the market. The company has strong research and development strength, started the layout of new energy forklift truck early, deeply bound Ningde era, and now has a perfect new energy forklift product matrix. In terms of overseas markets, the demand for overseas markets is strong, and the company has set up a number of sales subsidiaries overseas to form a linkage with overseas subsidiaries, and the proportion of overseas revenue continues to increase, reaching 34.96% in 2022. We believe that under the trend of electrification, especially lithium electrochemical transformation, the active layout of overseas markets is conducive to the formation of global competitiveness of domestic forklift brands, the realization of corner overtaking, and the improvement of the company's overseas marketing system will fully benefit.