ZHEJIANG DINGLI(603338) 东吴证券·2024-03-23 16:00Investment Rating - Buy (Maintained) [1] Core Views - The company plans to invest 1.7 billion yuan to build a new production base for new energy aerial work platforms, which is expected to further expand its capacity and support medium to long-term growth [3] - The company intends to acquire 50.2% equity of CMEC to achieve 100% ownership, accelerating its expansion in the North American market [4] - Management's share purchase plan demonstrates confidence in the company's growth prospects [5] - The company's product quality is increasingly recognized overseas, and it has won multiple awards in international competitions [5] Financial Projections and Valuation - Revenue is projected to grow from 5.445 billion yuan in 2022 to 9.915 billion yuan in 2025, with a CAGR of 22.1% [2] - Net profit attributable to the parent company is expected to increase from 1.257 billion yuan in 2022 to 2.632 billion yuan in 2025, with a CAGR of 27.9% [2] - EPS is forecasted to rise from 2.48 yuan in 2022 to 5.20 yuan in 2025 [2] - The current P/E ratio is 22.59x for 2022 and is expected to decrease to 10.79x by 2025 [2] Capacity Expansion - The new production base will have an annual capacity of 20,000 units of new energy aerial work platforms, with an estimated output value of 2.5 billion yuan upon reaching full capacity [3] - The construction period is 3 years, and the project is located near the existing production facilities in Deqing County, Zhejiang Province [3] - The company's fifth-phase factory, with an annual capacity of 4,000 large intelligent high-altitude platforms, has already been put into operation, contributing to future growth [3] Market Expansion - The acquisition of CMEC will provide the company with greater autonomy in the North American market, leveraging CMEC's brand and sales channels to promote new products [4] - CMEC, a local brand in the US, has established brand recognition and customer loyalty, which will facilitate market penetration [4] Management Confidence - The company's board secretary, Ms. Liang Jin, plans to purchase 4-5 million yuan worth of company shares within 6 months, reflecting management's confidence in the company's growth [5] - The company has been recognized internationally, winning four awards at the 2024 International Aerial Work Platform Awards (IAPA), further validating its product quality [5] Financial Metrics - The company's gross margin is expected to remain stable, ranging from 36.62% to 38.26% from 2023 to 2025 [9] - ROE is projected to be around 19-21% during the same period, indicating strong profitability [9] - The company's debt-to-asset ratio is expected to decrease slightly, from 40.13% in 2022 to 35.85% in 2025, reflecting a healthy financial structure [9]