External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Zhejiang Dingli Machinery  L / Equity Bottom-Up

<ul><li>Zhejiang Dingli’s (Dingli) 3Q25 net profit dropped 15% YoY to RMB542mn, as a result of slow revenue growth along with higher expense.</li><li>The weaker-thanexpected earnings reaffirmed our cautious stance regarding the weak demand for AWP as well as Dingli’s lack of overseas capacity expansion plan to avoid tariff and AD/CVD.</li><li>We see downside risks to the consensus forecast. Our TP is unchanged at RMB48, based on 12.8x 2025E P/E (0.5SD below the three-year average P/E). Maintain HOLD.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Zhejiang Dingli’s (Dingli) 3Q25 net profit dropped 15% YoY to RMB542mn, as a result of slow revenue growth along with higher expense.The weaker-thanexpected earnings reaffirmed our cautious stance regarding the weak demand for AWP as well as Dingli’s lack of overseas capacity expansion plan to avoid tariff and AD/CVD.We see downside risks to the consensus forecast. Our TP is unchanged at RMB48, based on 12.8x 2025E P/E (0.5SD below the three-year average P/E). Maintain HOLD.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Zhejiang Dingli (603338 CH) - 3Q25 Net Profit -15% YoY, Below Expectations

<ul><li>Zhejiang Dingli (Dingli) preannounced over the weekend the key financial figures for 1H25.</li><li>We calculate that revenue grew 1% YoY to RMB2.4bn in 2Q25, which we think is a resilient figure given the volatile tariff level during the quarter.</li><li>Net profit in 2Q25 grew 19% YoY to RMB622mn, largely driven by FX gains (strong EUR and GBP) which made the results slightly better than our expectation. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Zhejiang Dingli (Dingli) preannounced over the weekend the key financial figures for 1H25.We calculate that revenue grew 1% YoY to RMB2.4bn in 2Q25, which we think is a resilient figure given the volatile tariff level during the quarter.Net profit in 2Q25 grew 19% YoY to RMB622mn, largely driven by FX gains (strong EUR and GBP) which made the results slightly better than our expectation. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Zhejiang Dingli (603338 CH) - 2Q25 Profit Grew 19% YoY but Largely on FX Gains

<ul><li>Zhejiang Dingli’s (Dingli) EBIT in 1Q25 only slightly increased 2% YoY to RMB440mn, as the 30% YoY revenue growth was offset by higher SG&amp;A expense which was likely a result of the consolidation of CMEC.</li><li>The results were slightly weaker-than-expectations. Net profit grew 42% YoY to RMB429mn, but was largely helped by a 4.3x YoY increase in net finance income (FX gain based on our estimate) as well as a 93% YoY reduction on fair value loss (due to holdings in Horizon CD [9930 HK]).</li><li>The net profit in 1Q25 accounted for 23% of our full-year net profit (15% below consensus). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Zhejiang Dingli’s (Dingli) EBIT in 1Q25 only slightly increased 2% YoY to RMB440mn, as the 30% YoY revenue growth was offset by higher SG&amp;A expense which was likely a result of the consolidation of CMEC.The results were slightly weaker-than-expectations. Net profit grew 42% YoY to RMB429mn, but was largely helped by a 4.3x YoY increase in net finance income (FX gain based on our estimate) as well as a 93% YoY reduction on fair value loss (due to holdings in Horizon CD [9930 HK]).The net profit in 1Q25 accounted for 23% of our full-year net profit (15% below consensus). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Zhejiang Dingli (603338 CH) - 1Q25 Profit Rose 42% YoY but Only Helped by Non-Operating Items

<ul><li>We believe the US’s newly proposed tariff on China will place Dingli into a challenging situation, given that the US has long been the most important market for Dingli (close to 30% of total revenue in 2024E, based on our estimates).</li><li>We see several downside risks: (1) the policy uncertainties will likely affect the capex plan of AWP operators in the US, thereby affecting the procurement for AWPs; (2) the proposed 34% incremental tariff on China’s exports exceeds the 19% reduction of anti-dumping (AD) duties approved by the US last year.</li><li>While we understand that Dingli will potentially expand the manufacturing capacity in the US, we believe it will take time to see the actual impact.  </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We believe the US’s newly proposed tariff on China will place Dingli into a challenging situation, given that the US has long been the most important market for Dingli (close to 30% of total revenue in 2024E, based on our estimates).We see several downside risks: (1) the policy uncertainties will likely affect the capex plan of AWP operators in the US, thereby affecting the procurement for AWPs; (2) the proposed 34% incremental tariff on China’s exports exceeds the 19% reduction of anti-dumping (AD) duties approved by the US last year.While we understand that Dingli will potentially expand the manufacturing capacity in the US, we believe it will take time to see the actual impact.  Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Zhejiang Dingli (603338 CH) - Challenging Situation with Pressure from Both End Demand and US Tariff

Thematic (Sector/Industry)

<ul><li>China Construction Machinery Association (CCMA) has just released the full set of construction machinery sales data for Oct.</li><li>Domestic sales of truck cranes and crawler cranes remained strong (+42%/+54% YoY in Oct), which we believe were driven by energy projects and wind power installation.</li><li>Exports in Oct were strong across different types of machinery (except AWPs &amp; truck cranes). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Construction Machinery Association (CCMA) has just released the full set of construction machinery sales data for Oct.Domestic sales of truck cranes and crawler cranes remained strong (+42%/+54% YoY in Oct), which we believe were driven by energy projects and wind power installation.Exports in Oct were strong across different types of machinery (except AWPs &amp; truck cranes). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Capital Goods - Domestic crane demand continues to recover

China

Zhejiang Dingli Machinery Co Ltd designs and manufactures industrial lifts. The Company's main products include scissor lifts and boom lifts. Zhejiang Dingli distributes their products worldwide.

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Zhejiang Dingli Machinery L (603338 CH)

Zhejiang Dingli (603338 CH) - 3Q25 Net Profit -15% YoY, Below Expectations

Zhejiang Dingli’s (Dingli) 3Q25 net profit dropped 15% YoY to RMB542mn, as a result of slow revenue growth along with higher expense.

CMB International

Zhejiang Dingli (603338 CH) - 2Q25 Profit Grew 19% YoY but Largely on FX Gains

That said, we maintain our cautious stance on Dingli as we think it will take time for the Company to adjust its strategy (i.e. high proportion of...

CMB International

Zhejiang Dingli (603338 CH) - 1Q25 Profit Rose 42% YoY but Only Helped by Non-Operating Items

Zhejiang Dingli’s (Dingli) EBIT in 1Q25 only slightly increased 2% YoY to RMB440mn, as the 30% YoY revenue growth was offset by higher SG&A expense...

CMB International

Zhejiang Dingli (603338 CH) - Challenging Situation with Pressure from Both End Demand and US Tariff

We now expect only 5% earnings growth in 2025E. Downgrade to HOLD from Buy with new TP of RMB51 (previously RMB75), based on 12x 2025E P/E.

CMB International

Capital Goods - Domestic crane demand continues to recover

China Construction Machinery Association (CCMA) has just released the full set of construction machinery sales data for Oct.

CMB International

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