ZHEJIANG DINGLI(603338) 东吴证券·2024-10-31 06:43Investment Rating - The report maintains a "Buy" rating for Zhejiang Dingli (603338) [1] Core Views - Zhejiang Dingli's Q3 2024 net profit attributable to parent company increased by 38% YoY, exceeding expectations [1] - The company's performance growth is driven by successful overseas market expansion, particularly in North America, and the contribution from CMEC acquisition [2] - CMEC's consolidation impact is gradually diminishing, with gross margin recovering QoQ in Q3 2024 [3] - The company plans to invest 1.7 billion yuan in a new production base, which is expected to further expand its new energy aerial work platform capacity [4] Financial Performance - Q1-Q3 2024 revenue reached 6.13 billion yuan, up 30% YoY, with net profit attributable to parent company at 1.46 billion yuan, up 13% YoY [2] - Q3 2024 revenue was 2.3 billion yuan, up 38% YoY, with net profit attributable to parent company at 640 million yuan, up 38% YoY [2] - Q3 2024 gross margin was 37.6%, down 4.8 ppts YoY but up 5.8 ppts QoQ [3] - Q3 2024 net margin was 28.0%, down 0.1 ppt YoY but up 6.3 ppts QoQ [3] Future Projections - Revenue is expected to grow from 8.299 billion yuan in 2024E to 11.607 billion yuan in 2026E [1] - Net profit attributable to parent company is projected to increase from 2.158 billion yuan in 2024E to 2.984 billion yuan in 2026E [1] - EPS is forecasted to rise from 4.26 yuan in 2024E to 5.89 yuan in 2026E [1] Expansion Plans - The company is constructing its fifth-phase factory with planned output value of 3.8 billion yuan, focusing on high-rise boom lifts and scissor lifts [4] - A new 1.7 billion yuan investment project for 20,000 new energy aerial work platforms is planned, with expected output value of 2.5 billion yuan upon completion [4] Valuation Metrics - Current P/E ratio is 11.38x for 2024E, expected to decrease to 8.23x by 2026E [1] - Current P/B ratio is 2.49x [6] - Market capitalization stands at 24.56 billion yuan [6]