ZHEJIANG DINGLI(603338) Guolian Securities·2024-10-31 09:20Investment Rating - The report maintains a "Buy" rating for the company [2][3][7] Core Views - The domestic aerial work platform industry in 2024 is expected to be less favorable than anticipated, while overseas market demand remains relatively strong. The company is projected to achieve revenues of 77.32 billion, 92.80 billion, and 108.46 billion yuan from 2024 to 2026, with net profits of 21.31 billion, 25.42 billion, and 31.08 billion yuan respectively, resulting in a CAGR of 18.52%. EPS is expected to be 4.21, 5.02, and 6.14 yuan per share for the same period. The company is focusing on promoting overseas business and enhancing cooperation with large overseas leasing companies, which is expected to generate new demand for its diversified products [2][5][7]. Financial Performance - In Q3 2024, the company achieved a revenue of 61.34 billion yuan, a year-on-year increase of 29.35%, and a net profit of 14.60 billion yuan, up 12.91% year-on-year. For Q3 2024, revenue reached 22.74 billion yuan, a 38.37% increase year-on-year, with a net profit of 6.36 billion yuan, up 37.72% year-on-year [5][7]. - The company's gross margin for the first three quarters of 2024 was 36.16%, down 1.51 percentage points year-on-year, while the net margin was 23.83%, down 3.45 percentage points year-on-year. In Q3 2024, the gross margin was 37.6%, down 6.23 percentage points year-on-year, and the net margin was 28.01%, down 0.09 percentage points year-on-year [7][8]. Market Dynamics - The company’s boom in arm-type aerial work platforms continues, with sales revenue for its boom products increasing by 57.67% year-on-year, accounting for 48.57% of its main business revenue, surpassing scissor lift revenue. The company is also seeing an upward trend in overseas markets due to a comprehensive product range and a solid pipeline of new products [5][7].