ZHEJIANG DINGLI(603338) 东吴证券·2024-04-25 15:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's performance in 2023 met expectations, with significant growth driven by the expansion of boom products and overseas market penetration [3] - The company plans to invest 1.7 billion yuan in a new production base, which is expected to further enhance its capacity in the new energy high-altitude machinery sector [3] - The company has completed the acquisition of CMEC, a local brand in the US, which is anticipated to provide more operational autonomy in the North American market [3] Financial Performance Summary - In 2023, the company achieved total revenue of 6.3 billion yuan, a year-on-year increase of 16%, and a net profit attributable to shareholders of 1.87 billion yuan, up 49% year-on-year [2][3] - For Q1 2024, the company reported revenue of 1.45 billion yuan, a 12% increase year-on-year, while net profit decreased by 5% to 302 million yuan [2][3] - The gross profit margin for 2023 was 38.5%, an increase of 7.4 percentage points year-on-year, driven by lower raw material costs and improved cost control [3] Product and Market Insights - The company's boom products saw a revenue increase of 68% year-on-year, significantly contributing to overall growth [3] - Domestic revenue reached 2.1 billion yuan, a 15% increase, while overseas revenue was 3.8 billion yuan, up 13% [3] - The company’s gross margin for boom products was 30.5%, reflecting a substantial year-on-year increase [3] Future Projections - The company forecasts net profits of 2.2 billion yuan for 2024 and 2.6 billion yuan for 2025, with an expected net profit of 3 billion yuan in 2026 [3] - The projected P/E ratios for the next three years are 15, 12, and 11 times, respectively [3]