ZHEJIANG DINGLI(603338) 华创证券·2024-04-26 03:02Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [1][11]. Core Insights - The company achieved a revenue of 6.312 billion yuan in 2023, a year-on-year increase of 15.92%, and a net profit attributable to shareholders of 1.867 billion yuan, up 48.51% year-on-year. For Q1 2024, revenue was 1.452 billion yuan, a growth of 11.53%, while net profit decreased by 5.4% to 302 million yuan [2][4]. - The company is benefiting from the expansion of its high-end arm-type products in overseas markets, with overseas revenue reaching 3.84 billion yuan, a growth of 13.35%, accounting for 64.4% of total revenue. The sales revenue of arm-type products increased to 41.0%, up 13.2 percentage points year-on-year [2][4]. - The company is focused on automation and has increased its R&D investment, with R&D expenses rising to 220 million yuan in 2023, a growth of 8.74%. The electric version of arm-type products has seen an increase in sales ratio to 73.36%, up 11.07 percentage points [2][4]. Financial Summary - The company forecasts revenues of 7.643 billion yuan, 8.614 billion yuan, and 9.486 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 21.09%, 12.71%, and 10.12% [4][5]. - The net profit attributable to shareholders is projected to be 2.133 billion yuan, 2.495 billion yuan, and 2.806 billion yuan for the same years, with growth rates of 14.25%, 16.97%, and 12.46% [4][5]. - The earnings per share (EPS) are expected to be 4.21 yuan, 4.93 yuan, and 5.54 yuan for 2024, 2025, and 2026, respectively [4][5].