浙江鼎力：公司事件点评报告：深化拓展海外市场，盈利能力稳步提升

Investment Rating - Buy (First Coverage) [1] Core Views - The company has achieved steady growth in profitability through deepening its overseas market expansion [1] - The acquisition of CMEC has strengthened the company's presence in the North American market, with the potential to capture more market share [3] - The company's gross margin improved to 35.3% in H1 2024, up by 0.9 percentage points year-on-year, driven by effective cost control and scale effects [4] - The company's revenue and net profit are expected to grow significantly from 2024 to 2026, with EPS projected to increase from 4.19 yuan to 5.93 yuan [5] Financial Performance - In H1 2024, the company reported revenue of 3.859 billion yuan, a year-on-year increase of 24.56%, while net profit attributable to shareholders was 824 million yuan, a slight decrease of 0.88% due to foreign exchange losses of 40 million yuan [1] - In Q2 2024, revenue reached 2.407 billion yuan, up 34.02% year-on-year, with net profit attributable to shareholders increasing by 1.75% to 522 million yuan [1] - The company's period expense ratio was 6.69% in H1 2024, up by 4.49 percentage points year-on-year, mainly due to increased financial expenses caused by exchange rate fluctuations [4] Strategic Expansion - The company has actively pursued a global strategy, including equity cooperation and establishing subsidiaries to expand overseas sales channels [3] - The acquisition of CMEC, completed in April 2024, has given the company a 99.497% stake in CMEC, which will help accelerate its market penetration in North America [3] Future Projections - Revenue is expected to grow from 7.549 billion yuan in 2024 to 10.535 billion yuan in 2026, with a CAGR of 16.1% [5] - Net profit attributable to shareholders is projected to increase from 2.123 billion yuan in 2024 to 3.002 billion yuan in 2026, with a CAGR of 17% [5] - The company's PE ratio is expected to decrease from 12.2x in 2024 to 8.6x in 2026, indicating potential undervaluation [5]