Zhejiang Dingli (603338): Domestic Market Revenue Proportion Increases, Arm-type Products Maintain Rapid Growth

The event company announced the 2019 semi-annual report, which may realize revenue8.

49 ppm, a ten-year increase of 8.

05%; net profit attributable to mother 2.

60 ppm, an increase of 26 in ten years.


Brief comment on the overall short-term pressure on the rapid growth of revenue, but slightly improved profitability ① In the first half of 19, due to the decline in revenue in North America, the overall growth of the company improved.

19H1 income / net profit attributable to mothers are 8 respectively.


6 billion, a 10-year growth of 8.

05%, 26.


Among them, Q2’s single quarter revenue / attribution net profit is 4 respectively.


5.9 billion, an increase of -2 each year.

05% / 17.

79%; ② From the perspective of profitability, the company’s overall gross margin / net margin in the first half of the year were 41.

73% / 30.

67%, an increase of 4 per year.


53 points, mainly due to the increase in the proportion of revenue in mainland China and the increase in profitability after the rapid increase in the size of arm-type products.

The domestic market accounted for more than half of the revenue, and the North American market revenue exceeded ① in the first half of 2019. In order to reduce the impact of Sino-US trade friction on the company, the company actively adjusted its market strategy and strengthened sales in Europe and Asia.

As of the first half of 2019, the company’s overseas market’s main business revenue accounted for 48%.

87%, a decrease of 12 per year.


Among them, Europe, North America, Asia and other markets accounted for 38% of export revenue.

79%, 32.

91% and 28.

30%, the highest growth rate of income was 47.

16%, -53.

64% and 21.

84%; ③ As far as the domestic market is concerned, in the first half of the year, the proportion of the company’s domestic market main business income increased to 51.

13%, the income scale increased by 35 compared with the same period last year.

22%; we believe that domestic aerial platforms are the “last blue ocean of construction machinery”. Although they have experienced rapid growth for many years, their holdings still have a high room for growth.

Whether from the perspective of rising labor costs, increased operating efficiency requirements, improved safety operations policies and regulations, or from the perspective of the broad application field, the market demand for aerial work platforms in China is huge.

The sales of arm-type products have grown rapidly, and the company has basically completed the product and throughput layout. ① End users of aerial work platforms mainly use equipment through leasing. The domestic leasing market has grown rapidly, the number of leasing companies has continued to increase, and the scale of leasing has continued to increase.Its own product structure is continuously optimized at the same time; ② The overall domestic 都市夜网 leasing company’s product structure is still dominated by scissors, entering the industry development and construction site conditions, the demand for arm products is gradually increasing, and the company’s domestic arm products reached 0 in the first half of 2019.

720,000 yuan, an increase of 88 over the same period last year.

18%, accounting for 17% of domestic main business income.

84%; ③ The company is the first to deploy in the field of arm platforms. It has cooperated with Magni to develop and launch 10 new designs of arm types. At present, the product and capacity layout have been basically completed. Upgraded arm types have been produced in small batches and put on the market.The fund-raising project has also completed the construction of the main factory, which is at the end of construction and equipment procurement 杭州桑拿 and installation. ④ According to customer feedback, the company’s straight-arm product set has good comprehensive performance, great customer experience, low equipment failure rate, and maintenance.Convenience and many other advantages are integrated into one. After the release of future production capacity is judged, it will bring breakthrough breakthrough to the company.

Earnings forecast and investment rating The overall growth of the domestic AWP market in 2019 is still expected to be better, but the growth of overseas markets, especially the North American market, is under short-term pressure.

Looking forward to 2020, in terms of overseas sales, the merged company is vigorously developing overseas markets outside of North America. In view of the current trade frictions in the North American market, related products are gradually replacing the negotiation space. We believe that the company ‘s overseas market revenue growth will increase and bottom up.In terms of products, we believe that after 2-3 years of cultivation in the domestic AWP market, the recognition and demand for arm-type products has increased rapidly.

After the company’s investment and investment projects in 2020 are put into production, it is expected to create a new force.

Expected company 2019?
In 2021, the income will be 20.



5.4 billion, net profit attributable to mothers was 6.



99 ppm, corresponding to the closing price of PE on August 16, 2019 was 38.

8x, 28.

2x, 21.

4x with a target price of 84.

17 yuan, maintaining the “overweight” level.