Zhejiang Dingli (603338) In-depth report: New arm of aerial platform opens new growth space

Zhejiang Dingli (603338) In-depth report: New arm of aerial platform opens new growth space

High-altitude operation platform industry: High domestic growth, large space, and early stage of development; there are many new players in the domestic market, and the domestic market share of domestic brands has gradually increased to 800 million yuan (estimated value) in the global high-altitude operation platform, with steady growth; the domestic marketThe scale is only about 50 trillion. In 2018, the domestic holdings of 100,000 units were far lower than the 600,000 units in the United States.

With the improvement of safety awareness, the improvement of construction efficiency and the driving of construction scenarios, the aerial platform’s compound growth rate has exceeded 50% in the past five years, and the application field has expanded.

At present, it is at an early stage of development, with problems such as incomplete product structure and immature downstream leasing market.

The global market share is highly concentrated.In 2018, the company entered the top ten in the world for the first time; in the domestic market, the city accounted for 27%. First, it was converted into imports. Traditional engineering machinery companies and local professional manufacturers accelerated their production expansion, and industry competition intensified.

Initially, the quality of domestic brand products and customer recognition have increased, and their domestic market share has gradually increased.

Zhejiang Dingli is the leader in domestic aerial work platforms, polishing products to improve customer stickiness, possessing domestic and overseas channel advantages, expanding profitability and focusing on aerial work platforms. The 2013/18 CAGR of net income / attribution to mothers reached 38% / 42%.

1) Core competitiveness: Adhere to the 无锡桑拿网 customer as the center, polish the product, reduce the operating cost of the leaser, and increase customer stickiness.

2) Channel advantages at home and abroad: Overseas participation in Italian Magni and US CMEC opens channels in mainstream markets in Europe and the United States, with the highest domestic product coverage and binding high-quality large customers such as Hongxin.

3) Outstanding profitability: The company has a strong supply chain and cost control advantages. In 2018, the gross profit margin was 42%, which is much higher than Terex / JLG’s 19% / 18%, building a highly profitable moat.

Zhejiang Dingli accelerates the transformation of the domestic market and the volume of new arms in 2020, opening up new space for growth The company’s domestic sales revenue accounted for 51% in the first half of 2019 and 天津夜网 continued to increase.

Domestic arm-type products account for about 10%, far exceeding the level of nearly 40% abroad, and have benefited from the expansion of application scenarios for a long time, and the arm-type market has ample space.

The arm-type upgrade product developed by the company in conjunction with Magni has excellent overall performance and good customer response. It is expected to be put into production in May 2020.

Investment advice The aerial work platform is a high-growth segment of the construction machinery industry. The company is still in a rapid growth stage.

It is estimated that the revenue for 2019-2021 will be 20/26/35 million yuan, with a future growth of 16% / 33% / 32% 5.

6/7.

7/10.

2 billion, a ten-year growth of 17% / 37% / 33%.

The EPS is 1.

62/2.

22/2.

95 yuan; PE is 41/30/22 times.

Using PEG estimation method, corresponding to its 2020 price-earnings ratio of 35 times, a reasonable market value of 270 yuan, corresponding to a target price of 77.

7 yuan / share.

Covered for the first time, giving “Buy” rating.

Risks suggest increased industry competition; increased global trade frictions; exchange rate fluctuations; and raw material price fluctuation risks.