ZHEJIANG DINGLI(603338) Huafu Securities·2024-10-30 06:45Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark within the next six months [5][14]. Core Insights - The company reported a 38% year-on-year increase in net profit for Q3 2024, amounting to 636 million yuan, with total revenue for the first three quarters reaching 6.134 billion yuan, a 29.35% increase year-on-year [1]. - The gross margin for Q3 2024 decreased by 6.23 percentage points year-on-year but improved by 5.79 percentage points quarter-on-quarter [2]. - The company is projected to achieve a revenue CAGR of 17% and a net profit CAGR of 20% from 2024 to 2026, with revised revenue estimates of 8.023 billion yuan for 2024, 9.704 billion yuan for 2025, and 11.023 billion yuan for 2026 [4]. Financial Performance Summary - For Q1-Q3 2024, the company achieved a gross margin of 36.2% and a net margin of 23.8%, with Q3 margins at 37.6% and 28.0% respectively [2]. - The company’s total revenue for 2023 is estimated at 6.312 billion yuan, with a projected net profit of 2.083 billion yuan, reflecting a 12% growth rate [4][11]. - The earnings per share (EPS) for 2024 is projected at 4.11 yuan, with corresponding price-to-earnings (P/E) ratios of 12, 10, and 8 for the years 2024, 2025, and 2026 respectively [4][11]. Market Trends - The export of aerial work platforms increased by 19.0% in Q3 2024 and 21.3% year-to-date, indicating strong demand in overseas markets [3]. - The company is recognized as a leading manufacturer of aerial work platforms globally, benefiting from high overseas market demand and increasing brand recognition [4].