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>Dingli’s net profit in 3Q23 surged 53% YoY to RMB462mn, which is way above our expectation.</li><li>The surprise came from the 11.5ppt YoY gross margin expansion to 43.8%, driven by strong sales of boom lifts and rising contribution from overseas.</li><li>We revise up our 2023E/24E/25E earnings forecast by 15%/8%/4% (8%/7%/4% above consensus), largely due to higher margin assumptions. </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.

Dingli’s net profit in 3Q23 surged 53% YoY to RMB462mn, which is way above our expectation.The surprise came from the 11.5ppt YoY gross margin expansion to 43.8%, driven by strong sales of boom lifts and rising contribution from overseas.We revise up our 2023E/24E/25E earnings forecast by 15%/8%/4% (8%/7%/4% above consensus), largely due to higher margin assumptions. 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) – 3Q23 Earnings +53% YoY

<ul><li>Dingli’s net profit in 1H23 grew 45% YoY to RMB831mn, close to the low end of the estimated profit growth of 40-60% announced in mid-Jul.</li><li>That said, we believe it could be due to the fluctuation of fair value of investment (-RMB64mn) which is non-operational.</li><li>The results in 1H23 imply record high quarterly net profit of RMB512mn in 2Q23 (+35% YoY). </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.

Dingli’s net profit in 1H23 grew 45% YoY to RMB831mn, close to the low end of the estimated profit growth of 40-60% announced in mid-Jul.That said, we believe it could be due to the fluctuation of fair value of investment (-RMB64mn) which is non-operational.The results in 1H23 imply record high quarterly net profit of RMB512mn in 2Q23 (+35% YoY). 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) – 2Q23 Earnings +35% YoY in Line

<ul><li>Over the weekend, Dingli announced that the net profit in 1H23E is expected to increase 40-60% YoY to RMB803-918mn.</li><li>This implies a record high quarterly net profit of RMB484-599mn in 2Q23E (up 28-58%), which we think is slightly better than expectations.</li><li>As highlighted in our report “Margin expansion in 23E; Volume growth in 24E” on 5 Jul, Dingli is a beneficiary of the decline in freight rate and steel cost, as well as the appreciation of foreign currency against RMB. </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.

Over the weekend, Dingli announced that the net profit in 1H23E is expected to increase 40-60% YoY to RMB803-918mn.This implies a record high quarterly net profit of RMB484-599mn in 2Q23E (up 28-58%), which we think is slightly better than expectations.As highlighted in our report “Margin expansion in 23E; Volume growth in 24E” on 5 Jul, Dingli is a beneficiary of the decline in freight rate and steel cost, as well as the appreciation of foreign currency against RMB. 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) – Record High Quarterly Profit in 2Q23E

<ul>
<li>We believe the listing of Horizon Construction (9930 HK, BUY), the major customer of Dingli in China market, will enhance the visibility of Dingli’s AWP orders over the coming 1-2 years.</li>
<li>Besides, we expect Dingli to deliver accelerating sales volume growth in 2024E upon the commencement of smart factory with annual capacity of 4,000 units of AWP.</li>
<li>On the margin side, we expect Dingli to deliver meaningful gross margin expansion given the decline in freight rate and steel cost, as well as the appreciation of foreign currency against RMB.</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 listing of Horizon Construction (9930 HK, BUY), the major customer of Dingli in China market, will enhance the visibility of Dingli’s AWP orders over the coming 1-2 years.
Besides, we expect Dingli to deliver accelerating sales volume growth in 2024E upon the commencement of smart factory with annual capacity of 4,000 units of AWP.
On the margin side, we expect Dingli to deliver meaningful gross margin expansion given the decline in freight rate and steel cost, as well as the appreciation of foreign currency against RMB.

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) – Margin expansion in 23E; Volume growth in 24E

Thematic (Sector/Industry)

<ul><li>What is new? On 23 Nov, SANY AWP (三一高空机械) signed an agreement with the municipal government of Huzhou, Zhejiang (source).</li><li>According to the agreement, SANY AWP will spend &gt;RMB10bn to build a production base for aerial work platform (AWP) and research centre in Wuxing District, Huzhou.</li><li>Upon the completion of the construction, the annual capacity of AWP is expected to reach 150k units, covering various types of boom lift, scissors lift and large-size intelligent AWP models.</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.

What is new? On 23 Nov, SANY AWP (三一高空机械) signed an agreement with the municipal government of Huzhou, Zhejiang (source).According to the agreement, SANY AWP will spend &gt;RMB10bn to build a production base for aerial work platform (AWP) and research centre in Wuxing District, Huzhou.Upon the completion of the construction, the annual capacity of AWP is expected to reach 150k units, covering various types of boom lift, scissors lift and large-size intelligent AWP models.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.

Huge AWP Expansion Plan by SANY Points to Deterioration of Competitive Landscape

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.

Zhejiang Dingli Machinery L (603338 CH)

Zhejiang Dingli (603338 CH) – 3Q23 Earnings +53% YoY

We revise up our 2023E/24E/25E earnings forecast by 15%/8%/4% (8%/7%/4% above consensus), largely due to higher margin assumptions.

CMB International

Zhejiang Dingli (603338 CH) – 2Q23 Earnings +35% YoY in Line

Dingli’s net profit in 1H23 grew 45% YoY to RMB831mn, close to the low end of the estimated profit growth of 40-60% announced in mid-Jul.

CMB International

Zhejiang Dingli (603338 CH) – Record High Quarterly Profit in 2Q23E

Over the weekend, Dingli announced that the net profit in 1H23E is expected to increase 40-60% YoY to RMB803-918mn. This implies a record high...

CMB International

Zhejiang Dingli (603338 CH) – Margin expansion in 23E; Volume growth in 24E

We believe the listing of Horizon Construction (9930 HK, BUY), the major customer of Dingli in China market, will enhance the visibility of...

CMB International

Huge AWP Expansion Plan by SANY Points to Deterioration of Competitive Landscape

What is new? On 23 Nov, SANY AWP (三一高空机械) signed an agreement with the municipal government of Huzhou, Zhejiang (source).

CMB International