Group 1 - The core viewpoint of the report highlights that Zhejiang Dingli focuses on high-altitude work platforms and is the first manufacturer globally to achieve full electrification of its product line [1] - The company has successfully electrified its entire product range, covering three major series: boom lifts, scissor lifts, and vertical lifts, demonstrating its capability for platform iteration and differentiated expansion [1] - The competitive landscape in China's high-altitude work platform market is intense, with a total rental market inventory of 669,200 units, including 487,200 scissor lifts and 172,700 boom lifts, indicating sustained long-term demand for new and replacement units [1] Group 2 - The report projects that Zhejiang Dingli has the potential to increase its market share globally as it continues to expand its product offerings [1] - The company is compared to peers and is assigned a valuation of 18 times PE for 2025, with a target price set at 71.1 yuan [1] - The initial coverage of the company includes a recommendation to "buy" [1]

Core Insights - Zhejiang Dingli has recently engaged with multiple investment institutions, indicating stable production and a positive outlook for the aerial work platform market, both domestically and internationally [1][4]. Market Demand - The global aerial work platform market shows stable demand, with mature markets experiencing replacement needs and emerging markets demonstrating strong growth [4]. - The domestic market is expected to maintain ongoing demand for new and replacement equipment [4]. Product Strategy - The company offers a comprehensive product range and has a strong reserve of new products to meet diverse customer needs [4]. - In response to market demands, the company has introduced differentiated products, including the "oil-to-electric" technology service, allowing for easy conversion of diesel equipment to electric [6]. Competitive Advantage - Manufacturers with high product quality, brand recognition, large production scale, and effective electrification strategies are more competitive in the green and low-carbon era [5]. - The company focuses on providing high-quality, differentiated products and excellent after-sales service to help customers reduce lifecycle costs [6]. Innovation and R&D - The company leverages its strong R&D capabilities to develop differentiated products that integrate aerial work platforms with robotics, targeting specific application scenarios [7]. - New products such as ship spraying and rust removal robots have been introduced, which significantly enhance efficiency, safety, and environmental protection compared to traditional manual operations [8]. Operational Strategy - The company is actively expanding its global market presence and enhancing the sales proportion of high-value, differentiated products [8]. - Internal controls focus on cost management, process optimization, quality control, and smart manufacturing to improve operational quality and efficiency [8].

Financial Performance - In H1 2025, the company achieved revenue of 4.336 billion yuan, a year-on-year increase of 12.35%, and a net profit attributable to shareholders of 1.052 billion yuan, up 27.63% year-on-year [1] - In Q2 2025, the company reported revenue of 2.438 billion yuan, a year-on-year increase of 1.27%, and a net profit of 623 million yuan, up 19.40% year-on-year [1] - The gross profit margin for H1 2025 was 35.75%, an increase of 0.45 percentage points, while the expense ratios for sales, management, R&D, and financial expenses were 3.97%, 3.48%, 3.32%, and -6.69%, respectively, with significant improvements in exchange gains contributing to operating profit [1] Global Strategy and Market Expansion - Despite tariff pressures, the company demonstrated strong resilience with significant growth in overseas revenue, achieving 3.37 billion yuan in overseas main business income in H1 2025, a year-on-year increase of 21.25% [1] - The company continues to implement a globalization strategy, optimizing overseas subsidiary operations and enhancing channel development while introducing high-value, differentiated products to expand market coverage [1] Technological Advancements - The company has completed the electrification of its entire product line and launched a three-year warranty, introducing the "oil-to-electric" technology service globally in H1 2025 [2] - The modular design allows for easy replacement of diesel modules with electric ones, facilitating rapid upgrades for rental businesses [2] - The company has launched various robotic solutions to meet diverse customer needs in different application areas, enhancing its automation capabilities [2] Manufacturing and Production Capacity - The company operates the industry's most advanced intelligent and automated manufacturing facility for aerial work platforms, utilizing big data, IoT, and AI technologies for a closed-loop production model [2] - The annual production capacity for large intelligent aerial platforms is set at 4,000 units, while a project for 20,000 units of new energy aerial work platforms is under active construction [2] Profit Forecast - The projected net profits attributable to shareholders for 2025-2027 are 2.068 billion yuan, 2.389 billion yuan, and 2.732 billion yuan, corresponding to current PE ratios of 13x, 12x, and 10x, respectively [2]