ZHEJIANG DINGLI(SH:603338) China Post Securities·2025-09-02 12:55Investment Rating - The investment rating for the company is "Buy" and it is maintained [2] Core Views - The company has shown steady growth in performance, with a significant increase in revenue and net profit in the first half of 2025. The revenue reached 4.336 billion yuan, representing a year-on-year growth of 12.35%, while the net profit attributable to shareholders was 1.052 billion yuan, up 27.63% [5][6] - The company has successfully expanded its overseas market, achieving a 21.25% increase in overseas revenue in the first half of 2025, despite a challenging international trade environment [7] - The company is enhancing its production capacity with advanced smart manufacturing facilities, which are expected to improve its competitive edge in high-end intelligent products [7] Summary by Sections Company Overview - Latest closing price: 54.36 yuan - Total shares: 5.06 billion - Total market capitalization: 27.5 billion yuan - 52-week high/low: 68.88/39.48 yuan - Debt-to-asset ratio: 34.6% - Price-to-earnings ratio: 16.88 [4] Financial Performance - In Q2 2025, the company achieved a total revenue of 2.438 billion yuan, with a year-on-year growth of 1.3%. The net profit for the same period was 623 million yuan, up 19.4% [6] - The gross margin improved by 0.44 percentage points to 35.75%, while the expense ratio decreased significantly [6] Earnings Forecast and Valuation - Revenue projections for 2025-2027 are 9.001 billion, 10.028 billion, and 11.055 billion yuan, with year-on-year growth rates of 15.42%, 11.40%, and 10.25% respectively. The net profit attributable to shareholders is expected to be 1.972 billion, 2.237 billion, and 2.521 billion yuan, with growth rates of 21.10%, 13.42%, and 12.70% [8][10] - The corresponding PE ratios for 2025-2027 are projected to be 13.84, 12.20, and 10.83, maintaining a "Buy" rating [8]