Investment Rating - The industry investment rating is "Positive" and maintained [11] Core Viewpoints - Overseas companies are actively responding to the impact of US tariffs through various strategies such as inventory preparation, supply chain adjustments, price increases, and internal cost control [10][19] - Different companies are experiencing varying degrees of price adjustments, with Stanley Black & Decker already implementing price increases and expecting further hikes in Q3, while others like Amazon and Rational have yet to raise prices but may need to do so to alleviate cost pressures [10][19] - Companies have generally stocked up on inventory before the tariffs took effect to mitigate cost pressures [10] Summary by Relevant Sections Tools Sector - Stanley Black & Decker plans to mitigate tariff impacts through supply chain adjustments, price increases, and collaboration with the US government. Approximately 15% of its supply chain is from China, and the company aims to adjust this over 12-24 months [17][19] - The company has already raised prices in April 2025 and anticipates further increases in Q3 2025 [17] Aerial Work Platforms - Oshkosh manufactures nearly all its products sold in the US domestically and is using supply chain adjustments and cost control to mitigate tariff impacts. The company reports healthy market demand and order levels [22][23] - Terex's Genie brand sources about 90% of its AWP products from the US and Mexico, and the company is also taking steps to minimize tariff impacts through inventory preparation and supply chain adjustments [28][30] Technology Sector - Apple expects limited impact from tariffs on its Q1 2025 performance, with a projected cost increase of $900 million due to tariffs. The majority of its products sold in the US will be sourced from India and Vietnam [40][41] - Amazon has not seen significant price increases in retail goods but anticipates potential price adjustments in the future to manage costs [44][45] Commercial Kitchen Equipment - Rational's products exported to the US are affected by a 10% additional tariff, but the company is focusing on efficiency improvements to avoid price increases. The company has not yet adjusted prices but may need to pass on some costs [51][52]

Core Viewpoint - Zhejiang Dingli is a leading company in China's aerial work platform industry, with significant growth potential despite recent market adjustments [1][2][4]. Company Overview - Zhejiang Dingli Machinery Co., Ltd. was established in 2005 and has expanded its production capacity through multiple factory phases, including a new factory set to produce 4,000 large intelligent aerial platforms annually by 2024 [1]. - The company has made strategic acquisitions, including a 20% stake in Magni and a 25% stake in CMEC, enhancing its presence in North America and Europe [1]. Domestic Market Analysis - China's aerial platform rental market reached a scale of 14.88 billion yuan and a fleet of 525,000 units in 2023, with a five-year compound growth rate of 28.6% and 46.4% respectively [2]. - Despite a recent decline in sales, with a projected 33.4% drop to 87,000 units in 2024, the market still has significant room for growth compared to mature markets like the U.S. and Europe [2]. International Market Analysis - The U.S. aerial platform rental market is expected to grow to $18.1 billion by 2025, with a compound growth rate of 11.9% from 2020 [3]. - The European market has shown stable growth, with a projected market size of 3.7 billion euros by 2025, reflecting a compound growth rate of approximately 3.3% [3]. Competitive Advantages - Zhejiang Dingli has a rich product portfolio with over 200 specifications and a high degree of electrification, achieving 92.7% for scissor lifts and 100% for vertical lifts in 2022 [4][5]. - The company has established a strong market position, with a 27% share of the domestic aerial platform sales in 2023, and is recognized as one of the top five global manufacturers [4][5]. - Strategic acquisitions and partnerships have enhanced the company's market access and service capabilities, particularly in overseas markets [5]. Investment Outlook - The company is expected to see revenue growth, with projected revenues of 8.23 billion, 9.16 billion, and 10.53 billion yuan for 2024-2026, representing year-on-year growth rates of 30.5%, 11.2%, and 15.0% respectively [6]. - Net profits are forecasted to reach 2.15 billion, 2.44 billion, and 2.90 billion yuan for the same period, with growth rates of 14.9%, 13.7%, and 18.8% [6].

Market Overview - Global markets showed mixed performance, with the Hang Seng Index rising by 1.51% and the S&P 500 declining by 1.57% [1][3] - The Hang Seng Tech Index outperformed with a 3.79% increase year-to-date [1] Industry Insights Internet Industry - Companies with defensive attributes and those benefiting from domestic demand are expected to perform well under current market conditions [4] - Recommended stocks include NetEase (NTES US) and Tencent Music (TME US) for their growth potential in gaming and music sectors [4] - Ctrip (TCOM US) and Meituan (3690 HK) are highlighted for their resilience in domestic and outbound travel demand [4] Semiconductor Industry - The U.S. has announced "reciprocal tariffs," which may lead to additional tariffs on the semiconductor sector [5] - The trend towards domestic substitution in China's semiconductor industry is expected to accelerate, benefiting companies like Huahong Semiconductor (1347 HK) and North Huachuang (002371 CH) [5] - Investors are advised to focus on companies with strong domestic replacement capabilities, especially in AI and analog semiconductor sectors [5] Insurance Industry - Recent regulatory changes allow for an increase in equity investment limits for insurance funds, potentially injecting an estimated CNY 1.66 trillion into the stock market [6][7] - The new regulations raise the equity asset allocation limit to 50%, which could significantly enhance the investment capacity of insurance companies [6][7] - The core equity assets of listed insurance companies are expected to increase, reflecting a shift towards higher-yielding stocks in a low-interest-rate environment [8] Engineering Machinery Industry - Strong sales growth in excavators and wheel loaders was reported, with domestic sales increasing by 29% and 23% year-on-year, respectively [8] - Companies like SANY Heavy Industry (600031 CH) and Zoomlion (1157 HK) are recommended due to their strong market positions and sales performance [8] Company Analysis Zhejiang Dingli (603338 CH) - The company faces challenges due to new U.S. tariffs, which could significantly impact its revenue, as the U.S. market accounts for nearly 30% of its total income [9][10] - The rating has been downgraded to "Hold" with a target price of CNY 51, reflecting concerns over future profitability [9][10] Focus Stocks - Recommended stocks include Geely Automobile (175 HK), Xpeng Motors (XPEV US), and Tencent (700 HK), all showing significant upside potential based on current valuations [11]