浙江鼎力(603338):Boom lifts＆US market remain the key drivers

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  MN

  28 Aug 2024

  CMB International Global Markets | Equity Research | Company Update

  Zhejiang Dingli (603338 CH)

  Boom lifts & US market remain the key drivers

  Zhejiang Dingli’s (Dingli) EBIT in 2Q24 grew 72% YoY to RMB612mn, driven by

  revenue growth of 34% YoY and gross margin expansion of 2.6ppt YoY. Reported

  net profit grew only 2% YoY to RMB522mn, but largely a result of the reduction of

  net finance income due to the lack of FX gains. During the post results call,

  management reiterated the positive outlook for the US market, with an unchanged

  full-year boom lifts sales target of 2k units. Besides, management expects the

  incremental impact of a potential increase in tariffs after the US presidential

  election should be manageable, as the reduction of anti-dumping duties could

  mitigate the impact. We have left our earnings f