20230818-招银国际-浙江鼎力-603338.SH-2Q23_earnings_+35__YoY_in_line__Boom_lift_in_overseas_the_upcoming_driver_6页_1mb

Zhejiang Dingli Company Update

Performance Summary

• H1 2023 Financials: Net profit grew 45% YoY to RMB831mn, close to the estimated range's low end. Revenue increased 5% YoY to RMB3.1bn, led by a 13% YoY rise in overseas revenue (63% of total). Gross margin expanded 6.4ppt YoY to 34.4%, driven by lower freight and raw material costs, as well as RMB depreciation.
• Q2 2023 Results: Revenue rose 6% YoY to RMB1.79bn, with net profit up 35% YoY to RMB512mn, recording a high quarterly profit. Gross margin was 32.1%, slightly lower than Q1 2023 due to China's market impact.
• Product Breakdown: Boom lift revenue doubled its share to 38% of total revenue in H1 2023, with overseas boom lift revenue surging 89% YoY. Gross margin for boom lift improved by 5.6ppt YoY to 25.25%.
• Growth Outlook: Future growth will be driven by overseas markets, especially the US, where a new boom lift model has a backlog of ~300 units. Expected revenue and margin improvements despite potential anti-dumping duties in China.
• Target Price and Rating: Maintain target price at RMB67, based on 23x 2023E P/E; reiterate BUY recommendation due to 23% estimated earnings growth in 2024E.
• Risks: Key risks include intensified competition in China's AWP market, overseas demand slowdown, and RMB rate fluctuations.财务摘要显示盈利增长强劲。