We value Heli at Rmb15.2 per share based on 10.0x 25E P/E, near -0.5SD of a one-year forward average over the past five years, a 20% discount to Hangcha’s target P/E aligning with historical trend.  

Upside risks that could cause the stock to deviate from our target price include: 1) Depreciation of the RMB; 2) Drop in freight rates; 3) Better-than-expected demand recovery in the domestic forklift market; 4) Less fierce price competition; 5) Better-than-expected overseas demand recovery and progress on tariff, especially in Europe and the US.