November 4, 2025 05:09 PM GMT China Industrials | Asia Pacific Construction Machinery: Upgrade Dingli to OW We remain positive on the outlook for construction machinery, with the domestic up-cycle, overseas recovery and Chinese brands' market share gains in 2026e. With easing tariff pressure and expansion of product range, we upgrade Dingli to OW. Key Takeaways Price Target Rmb52.00 Rmb64.00 Leaders achieved solid growth in both domestic and overseas sales in 3Q25: Domestic sales growth of four key OEMs (Sa ...

Investment Rating - The investment rating for Zhejiang Dingli Machinery Co Ltd. is Overweight [6]. Core Insights - The report indicates that China's Aerial Working Platform (AWP) sales have shown a narrowing decline, with a 10% year-over-year decrease in March, totaling 18.2k units, compared to a 20% decline in the first three months of 2025. Domestic sales fell by 22% year-over-year to 8.8k units, while exports increased by 6% year-over-year to 9.4k units [1]. - Dingli has suspended shipments to the US due to tariffs but anticipates growth in non-US markets [1]. Summary by Sections Sales Performance - In March, AWP sales in China decreased by 10% year-over-year to 18.2k units, with domestic sales down 22% to 8.8k units and exports up 6% to 9.4k units [1]. Company Overview - Zhejiang Dingli Machinery Co Ltd. is a leading supplier of aerial working platforms in China, making the AWP sales volume a significant indicator for its share price [4]. Financial Metrics - The price target for Dingli is set at Rmb70.00, indicating a potential upside of 77% from the closing price of Rmb39.48 on April 18, 2025 [6]. - The company has a market capitalization of Rmb19,991 million and an enterprise value of Rmb15,647 million [6]. - Projected revenues for the fiscal years ending in December are Rmb6,312 million for 2023, Rmb8,450 million for 2024, Rmb10,020 million for 2025, and Rmb11,487 million for 2026 [6]. Valuation - The report applies a P/B multiple of 2.8x to the 2025 estimated book value per share, which aligns with its average P/B over the past three years, reflecting similar ROE levels and earnings growth [8].