20230706-招银国际-浙江鼎力-603338.SH-Margin_expansion_in_23E__Volume_growth_in_24E_6页_1mb

Summary of Zhejiang Dingli (603338 CH) Research Report

The Bloomberg report on Zhejiang Dingli highlights a positive outlook, maintaining a "BUY" rating with an increased target price to RMB67 from RMB59.50. Key factors include expected volume growth from Horizon Construction's post-IPO expansion in AWP fleet size, and margin improvements due to declining freight and steel costs, along with foreign currency appreciation. The company's smart factory is set to commence operation in 2024E, boosting sales volume. Financially, earnings forecasts were revised up by 2% and 5% for 2023E and 2024E, while revenue projections saw a downward adjustment reflecting capacity start times. Risks include intensified competition in the China AWP market and potential adverse currency movements. Current price is RMB56.66, with an upside of 18.2% to the target price.