ZHEJIANG DINGLI(603338) 华创证券·2024-08-28 16:08Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 63.2 CNY, indicating an expectation to outperform the benchmark index by over 20% in the next six months [1][2][11]. Core Insights - The company reported a revenue of 3.859 billion CNY for the first half of 2024, representing a year-on-year growth of 24.56%. The net profit attributable to shareholders was 824 million CNY, a slight decline of 0.88% year-on-year, while the net profit excluding non-recurring items increased by 5.90% to 863 million CNY [1]. - The sales of boom products surged by 57.67% year-on-year, accounting for 48.57% of the main business revenue, driven by the expansion in the North American market and the launch of high-end products [1]. - The completion of the CMEC acquisition allows for a change in revenue recognition, which may temporarily affect the income recognition pace but is expected to enhance market penetration in North America [1]. - The company is focusing on electric product innovation, which has led to a 38.87% increase in sales of electric boom products, aligning with the green energy transition in the European aerial work platform rental market [1]. Financial Summary - For the first half of 2024, the company achieved a gross margin of 35.30% and a net margin of 21.37%, with a slight increase in gross margin but a decrease in net margin due to high foreign exchange gains in the previous year [1]. - The projected revenues for 2024, 2025, and 2026 are 7.643 billion CNY, 8.614 billion CNY, and 9.486 billion CNY, respectively, with year-on-year growth rates of 21.09%, 12.71%, and 10.12% [3][5]. - The expected net profits for the same years are 2.133 billion CNY, 2.495 billion CNY, and 2.806 billion CNY, with growth rates of 14.25%, 16.97%, and 12.46% [3][5].