ZHEJIANG DINGLI(SH:603338) China Post Securities·2025-11-07 06:30Investment Rating - The investment rating for the company is "Buy" and is maintained [1] Core Insights - The company has demonstrated strong operational resilience, continuously launching differentiated products to meet diverse customer needs [4][6] - In the first three quarters of 2025, the company achieved revenue of 6.675 billion yuan, a year-on-year increase of 8.82%, and a net profit attributable to shareholders of 1.595 billion yuan, up 9.18% year-on-year [4][5] - The company is expected to benefit from a potential recovery in the European and American markets due to interest rate cuts, alongside an expansion of its arm-type products in North America and a favorable tax rate in the EU [6] Company Overview - Latest closing price: 53.90 yuan - Total shares: 5.06 billion; Total market capitalization: 27.3 billion yuan - 52-week high/low: 68.88/39.48 yuan - Debt-to-asset ratio: 34.6% - Price-to-earnings ratio: 16.74 - Largest shareholder: Xu Shugen [3] Financial Performance - In Q3 2025, the company reported revenue of 2.339 billion yuan, a year-on-year increase of 2.83%, but a net profit decrease of 14.72% [5] - The gross margin for the first three quarters of 2025 was 35.88%, with Q3 gross margin at 36.12%, showing a quarter-on-quarter increase of 4.12 percentage points [5] - The company’s revenue projections for 2025-2027 are 8.744 billion, 9.693 billion, and 10.737 billion yuan, with corresponding net profits of 1.970 billion, 2.224 billion, and 2.509 billion yuan [7][10] Valuation Metrics - The expected price-to-earnings ratios for 2025-2027 are 13.85, 12.27, and 10.88, respectively [7][10] - The company is projected to maintain a high gross margin and effective cost control, with a slight decrease in overall expense ratios [5][6]