浙江鼎力：产品出海交付顺利，Q3业绩超预期

Investment Rating - The report maintains a "Buy" rating for Zhejiang Dingli (603338.SH) [1] Core Views - The company reported a revenue of 6.134 billion RMB for the first three quarters of 2024, representing a year-on-year growth of 29.35%, and a net profit attributable to shareholders of 1.460 billion RMB, up 12.91% year-on-year [1] - The third quarter of 2024 saw a revenue of 2.274 billion RMB, a year-on-year increase of 38.37%, although it experienced a quarter-on-quarter decline of 5.54% [1] - The net profit for Q3 2024 was 636 million RMB, reflecting a year-on-year growth of 37.72% and a quarter-on-quarter increase of 21.81%, indicating better-than-expected performance [1] Revenue and Profit Analysis - The company has successfully expanded its overseas market, achieving over 30% revenue growth for two consecutive quarters [1] - Quarterly revenues for 2024 Q1-Q3 were 1.452 billion, 2.408 billion, and 2.274 billion RMB, with year-on-year growth rates of 11.53%, 34.00%, and 38.37% respectively, showing an accelerating growth trend [1] - The integration of subsidiary CMEC has opened long-term growth opportunities in the U.S. market, enhancing the company's brand presence in North America [1] Profitability Improvement - In Q3 2024, the company achieved a gross margin of 37.6%, an increase of 5.79 percentage points quarter-on-quarter, and a net margin of 28.01%, also showing improvement [1] - The increase in profitability is attributed to several factors: 1. Over 65% of the company's revenue came from overseas markets in 2023, with expectations for further growth in 2024 2. The electrification of products has increased, with the electrification rate of boom products rising from 58% in 2021 to 73% in 2023 3. The consolidation of CMEC has significantly enhanced profitability in the North American market, with CMEC achieving a net margin of 9.7% in H1 2024 [1] Forecast and Valuation - The company is expected to generate revenues of 7.781 billion, 9.752 billion, and 11.565 billion RMB for 2024-2026, with net profits of 2.260 billion, 2.729 billion, and 3.258 billion RMB respectively [1] - Corresponding price-to-earnings (PE) ratios are projected to be 11, 9, and 8 times for the same period [1]