ZHEJIANG DINGLI(603338) Tai Ping Yang·2024-11-01 07:33Investment Rating - The report maintains a "Buy" rating for Zhejiang Dingli, with a target price of 62.54, compared to the last closing price of 51.99 [1][4]. Core Views - The company achieved a record high quarterly performance in Q3, driven by strong demand in the North American market and the continuous growth of boom products. The integration of CMEC is expected to accelerate market expansion in North America [1][4][3]. Financial Performance - For the first three quarters of 2024, the company reported revenue of 6.134 billion, a year-on-year increase of 29.35%, and a net profit attributable to shareholders of 1.460 billion, up 12.91%. In Q3 alone, revenue reached 2.274 billion, growing 38.37% year-on-year, with a net profit of 636 million, an increase of 37.72% [2][4]. - The gross margin and net margin for Q3 were 37.60% and 28.01%, respectively, showing a significant improvement compared to the previous quarter, despite a year-on-year decline [4]. Market Expansion - The acquisition of a 50.2% stake in CMEC for 46.8542 million USD is expected to enhance the company's ability to penetrate the North American market. Following the acquisition, CMEC became a consolidated subsidiary, contributing positively to revenue and profit [3][4]. Earnings Forecast - The company forecasts revenues of 7.686 billion, 9.190 billion, and 10.909 billion for 2024, 2025, and 2026, respectively. Net profits are expected to be 2.110 billion, 2.520 billion, and 3.063 billion for the same years [4][6].