ZHEJIANG DINGLI(603338) 广发证券·2024-08-19 01:41Investment Rating - The report maintains a "Buy" rating for the company with a target price of 64.36 CNY per share [1] Core Viewpoints - The company has demonstrated resilience and growth through strategic acquisitions, product development, and market expansion, particularly in Europe and the US [1][2] - The company's core competitiveness lies in its management's forward-looking strategies, cost control capabilities, and strong product development through acquisitions [1] - The company is well-positioned to capitalize on the growing demand for electric and high-reach boom lifts in both European and US markets [2][4] Company Overview Historical Development - The company has undergone three major phases of development: domestic and international expansion (2006-2015), strategic acquisitions (2016-2017), and tariff-related challenges (2018-2021) [1] - The company has successfully transitioned from a focus on scissor lifts to boom lifts, with significant growth in the European market since 2022 [1] Core Competitiveness - The company's management has a strong focus on R&D and cost control, with 90% modular design and low labor costs contributing to high gross margins [1] - Strategic acquisitions of Magni, CMEC, and Teupen have provided the company with advanced technology, overseas channels, and brand recognition [1][17] Current Market Position - The company has achieved significant growth in the European market, with boom lift sales increasing rapidly in 2022-2023 [1][29] - The company's market share in Europe is estimated to be between 6%-9%, with further room for growth [13] Future Prospects - The company is poised to expand its presence in the US market, leveraging its partnership with CMEC and the growing demand for electric boom lifts [2][13] - The US market represents the largest opportunity for the company, with a market size of approximately 650 billion CNY and a strong demand for boom lifts [2][13] Financial Performance Revenue and Profit Forecast - The company's revenue is expected to grow from 5.445 billion CNY in 2023 to 10.422 billion CNY in 2026, with a CAGR of 17.7% [4] - Net profit is forecasted to increase from 1.867 billion CNY in 2023 to 3.203 billion CNY in 2026, with a CAGR of 24.3% [4] Valuation - The company is valued at 15x PE for 2024, with a target price of 64.36 CNY per share [2] Market Analysis European Market - The European market for aerial work platforms is mature, with a focus on boom lifts, which account for 43% of the rental market [48] - The company's market share in Europe is relatively low, with significant potential for growth, particularly in the electric boom lift segment [65][66] US Market - The US market is the largest and most mature market for aerial work platforms, with a strong demand for boom lifts, which account for 39% of the market [74] - The company is well-positioned to capitalize on the growing demand for electric boom lifts in the US, with a focus on expanding its presence through CMEC [2][13] Product Development - The company has a strong focus on electric and high-reach boom lifts, with 73.4% of its boom lift sales being electric in 2023 [41][66] - The company's D-series boom lifts, launched in 2023, are fully self-developed and represent a significant step forward in its product offerings [17] Strategic Acquisitions - The company's acquisitions of Magni, CMEC, and Teupen have provided it with advanced technology, overseas channels, and brand recognition [1][17] - The company has retained full ownership of patents and intellectual property from these acquisitions, strengthening its competitive position [38] Cost Control and Manufacturing - The company has a strong focus on cost control, with 90% modular design and low labor costs contributing to high gross margins [1] - The company's manufacturing strategy involves modular production in China, with components shipped in containers to reduce costs [42][44]