ZHEJIANG DINGLI(603338) Donghai Securities·2024-11-01 05:39Investment Rating - The investment rating for the company is "Buy" (maintained) [3] Core Views - The company achieved a revenue of 6.134 billion yuan in the first three quarters of 2024, representing a year-on-year growth of 29.35%, with a net profit attributable to shareholders of 1.460 billion yuan, up 12.91% year-on-year [6] - The company has successfully reduced its expense ratio, with sales, management, R&D, and financial expenses at 2.24%, 2.32%, 2.94%, and -1.04% respectively [6] - The company continues to deepen its global development, with overseas sales accounting for 60.8% of total revenue in 2023, and a 21.3% year-on-year increase in high-altitude operation platform exports [7] - The promotion of boom products has been successful, contributing significantly to revenue growth, with boom product revenue increasing by 57.67% year-on-year in the first half of 2024 [7] - The company emphasizes research and technological innovation, with R&D investment of 180 million yuan in the first three quarters of 2024, a 21.03% increase year-on-year [8] - The company has adjusted its profit forecasts for 2024-2026, expecting net profits of 2.106 billion, 2.554 billion, and 2.939 billion yuan respectively, with corresponding EPS of 4.16, 5.04, and 5.81 yuan [8] Summary by Sections Financial Performance - In Q3 2024, the company reported revenue of 2.274 billion yuan, a year-on-year increase of 38.37%, and a net profit of 636 million yuan, up 37.72% year-on-year [6] - The gross margin and net margin for the first three quarters of 2024 were 36.16% and 23.83% respectively [6] Expense Management - The company has effectively reduced its expense ratios, with notable decreases in sales and R&D expenses compared to the end of the previous year [6] Global Expansion - The company has established a global sales network covering over 80 countries, with significant growth in the North American market facilitated by its subsidiary CMEC [7] Product Development - The boom product series has become a major driver of revenue growth, with a significant increase in its revenue contribution compared to the previous year [7] Research and Development - The company maintains a leading position in R&D innovation within the industry, holding 280 patents and focusing on high-end, differentiated products [8] Investment Outlook - The company is expected to see continued growth in high-value equipment sales and exports to Europe, the US, and emerging markets, supporting the "Buy" rating [8]