ZHEJIANG DINGLI(603338) 光大证券·2024-04-26 11:02Investment Rating - The report maintains an "Accumulate" rating for the company [4]. Core Insights - The company achieved significant growth in 2023, with operating revenue of 6.31 billion yuan, a year-on-year increase of 15.9%, and a net profit of 1.87 billion yuan, up 48.5% year-on-year [2]. - The gross margin improved to 38.5%, an increase of 7.5 percentage points, driven by cost control, product structure optimization, and a decrease in raw material costs [2]. - The company reported a strong performance in its arm-type products, with revenue from aerial work platforms reaching 2.45 billion yuan, a remarkable growth of 68.2% [2]. Summary by Sections Financial Performance - In 2023, the company reported operating revenue of 63.1 billion yuan and a net profit of 18.7 billion yuan, with an EPS of 3.69 yuan [2]. - The operating cash flow was 22.3 billion yuan, reflecting a 137.8% increase year-on-year [2]. - For Q1 2024, the company achieved operating revenue of 14.5 billion yuan, a year-on-year increase of 11.5%, and a net profit of 300 million yuan, down 5.4% year-on-year [2]. Market Expansion - The company generated 3.84 billion yuan from overseas markets, a 13.4% increase, while domestic revenue reached 2.12 billion yuan, up 15.2% [2]. - The strong performance in arm-type products was attributed to increased sales efforts, particularly in overseas markets, where revenue grew by 141.3% [2]. Innovation and R&D - The company has achieved full electrification of its product line and is a leader in the digital and intelligent development of the industry [3]. - The "Future Factory" project, which utilizes big data, IoT, and AI technologies, is currently in trial production [3]. - R&D expenses in 2023 amounted to 220 million yuan, reflecting an 8.7% increase [3]. Profitability and Valuation - The report projects net profit for 2024 and 2025 to be 2.15 billion yuan and 2.53 billion yuan, respectively, with corresponding EPS of 4.25 yuan and 4.99 yuan [4]. - The company’s P/E ratio is projected to decrease from 17 in 2023 to 11 in 2026, indicating an attractive valuation [5].