ZHEJIANG DINGLI(603338) Tai Ping Yang·2024-09-03 00:03Investment Rating - The report maintains a "Buy" rating for Zhejiang Dingli (603338) with a target price of 62.52, compared to the last closing price of 48.43 [1][5]. Core Insights - The company's revenue for the first half of 2024 reached 3.859 billion yuan, a year-on-year increase of 24.56%, while the net profit attributable to shareholders was 824 million yuan, a slight decline of 0.88% [5]. - In Q2 2024, the company achieved a revenue of 2.408 billion yuan, reflecting a year-on-year growth of 34.00%, and a net profit of 522 million yuan, which is a 1.95% increase year-on-year [5]. - The arm-type products have seen significant growth, with revenue increasing by 57.67% year-on-year, accounting for 48.57% of the main business revenue [5]. - The acquisition of CMEC, which has been consolidated into the company, is expected to accelerate the expansion into the North American market, with CMEC generating revenue of 1.911 billion yuan and a net profit of 185 million yuan in the first half of 2024 [5]. Financial Performance - The gross margin for the first half of 2024 was 35.30%, an increase of 0.9 percentage points year-on-year, while the net margin decreased by 5.47 percentage points to 21.37% [5]. - The company forecasts revenues of 7.686 billion yuan, 9.190 billion yuan, and 10.909 billion yuan for 2024, 2025, and 2026 respectively, with net profits projected at 2.110 billion yuan, 2.520 billion yuan, and 3.063 billion yuan for the same years [6][5]. - The report indicates a projected PE ratio of 15 times for 2024, supporting the "Buy" rating [5].