ZHEJIANG DINGLI(SH:603338) Donghai Securities·2024-06-02 07:30Investment Rating - The report gives a "Buy" rating for Zhejiang Dingli, marking its first coverage in the market [6]. Core Views - Zhejiang Dingli is a leading enterprise in the aerial work platform industry, recognized for its innovative technology and comprehensive product range, which includes fuel, pure electric, and hybrid options. The company has established a strong global presence, with operations in over 80 countries and regions [9][10]. - The company achieved significant revenue and profit growth in 2023, with total revenue reaching 6.312 billion yuan, a year-on-year increase of 15.92%, and a net profit of 1.867 billion yuan, up 48.51% year-on-year. The company also announced a cash dividend of 10 yuan per 10 shares, totaling 506 million yuan [9][10]. - The domestic market for aerial work platforms is expected to grow, driven by the need for efficient and safe alternatives to traditional equipment. The report highlights the potential for increased demand in China, where the per capita ownership of aerial work platforms is significantly lower than in the U.S. [9][10]. - The company's modular design and global strategy are key competitive advantages, allowing for cost reductions and efficiency improvements. The report notes that 85% of the components in their boom series are interchangeable, which lowers procurement and maintenance costs [9][10]. Summary by Sections Company Overview - Zhejiang Dingli has been focused on the aerial work platform sector for nearly two decades, gaining high recognition from domestic and international clients. The company has a stable shareholding structure, with the largest shareholder holding over 50% of the shares [17][19]. - The product range is comprehensive, including boom, scissor, and mast-type platforms, with applications across various industries such as construction, logistics, and energy [21][22]. Financial Performance - The company has shown steady growth in revenue and net profit from 2018 to 2023, with 2023 figures indicating a revenue of 6.312 billion yuan and a net profit of 1.867 billion yuan. The gross margin and net margin improved to 38.49% and 29.58%, respectively [23][25]. - The report forecasts net profits for 2024-2026 to be 2.160 billion, 2.544 billion, and 2.973 billion yuan, respectively, with corresponding P/E ratios of 14.90, 12.65, and 10.82 [10][11]. Market Potential - The global market for aerial work platforms is projected to exceed 10 billion USD, with significant growth opportunities in Asia, particularly in China, where the market is still developing [35][40]. - The report emphasizes the increasing adoption of aerial work platforms as a safer and more efficient alternative to traditional scaffolding, driven by rising labor costs and safety regulations [31][33]. Competitive Position - Zhejiang Dingli ranks among the top manufacturers globally, with a notable presence in the market. The company has expanded its global footprint through acquisitions and partnerships, enhancing its competitive edge [42][43].