ZHEJIANG DINGLI(SH:603338) Changjiang Securities·2025-05-06 09:16Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - In Q1 2025, the company achieved a significant revenue growth of 30.72% year-on-year, primarily driven by the growth in overseas markets and the consolidation of CMEC [2][6]. - The gross profit margin for Q1 was 40.56%, an increase of 1.03 percentage points year-on-year, benefiting from a higher proportion of overseas sales and changes in product structure [2][6]. - The net profit margin reached 22.58%, up by 1.77% year-on-year, supported by increased exchange gains and reduced fair value losses [2][6]. - The company is expected to steadily increase its market share in Europe and achieve good growth in non-European and American markets, while also expanding into new application areas domestically [2][6]. Summary by Sections Financial Performance - In Q1 2025, the company reported revenues of 1.898 billion yuan, a year-on-year increase of 30.72%, and a net profit attributable to shareholders of 429 million yuan, up 41.83% year-on-year [6]. - The company’s operating income for Q1 was significantly boosted by the consolidation of CMEC, which began contributing to the financials from May 1, 2024 [14]. Market Outlook - The company is recognized as a leading manufacturer in the high-altitude work platform industry in China, with a strong focus on innovation and differentiation [14]. - The company received a minimum tax rate of 20.6% in the EU's anti-dumping investigation, providing a competitive advantage over both foreign and domestic brands [14]. - The company is actively exploring emerging markets outside of traditional Europe and the US, with positive feedback from customers leading to new orders [14]. Future Projections - The company is projected to achieve net profits of 2.104 billion yuan and 2.068 billion yuan for 2025 and 2026, respectively, with corresponding price-to-earnings ratios of 10 times and 11 times [14].