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.

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

<ul><li>What is new? The European Commission announced yesterday (13 Nov) that it will initiate an anti-dumping proceeding concerning imports of mobile access equipment (MAE, or AWP) from China.</li><li>While this looks negative to the Chinese AWP manufacturers at first glance, we think the estimated investigation time of 13-14 months will provide the Chinese manufacturers with time to take measures to mitigate the potential impact.</li><li>For instance, they can localize their AWP production overseas to avoid the potential duties. Besides, given that different tariffs may be applied, manufacturers with more experience in dealing with the investigation will have the chance to fight for lower tariffs.</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? The European Commission announced yesterday (13 Nov) that it will initiate an anti-dumping proceeding concerning imports of mobile access equipment (MAE, or AWP) from China.While this looks negative to the Chinese AWP manufacturers at first glance, we think the estimated investigation time of 13-14 months will provide the Chinese manufacturers with time to take measures to mitigate the potential impact.For instance, they can localize their AWP production overseas to avoid the potential duties. Besides, given that different tariffs may be applied, manufacturers with more experience in dealing with the investigation will have the chance to fight for lower tariffs.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.

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>According to the preliminary data from CME, China’s excavator sales dropped 26% YoY to ~13.2k units.</li><li>Sales in China remained weak with an estimated 49% YoY decline to 4.7k units in Jul, which is not a surprise given the lack of powerful stimulus policies.</li><li>Export, which had been strong since 2020, however, starts to see a loss of momentum. Export volume is expected to drop 2% YoY to 8.5k units in Jul, according to CME. </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.

According to the preliminary data from CME, China’s excavator sales dropped 26% YoY to ~13.2k units.Sales in China remained weak with an estimated 49% YoY decline to 4.7k units in Jul, which is not a surprise given the lack of powerful stimulus policies.Export, which had been strong since 2020, however, starts to see a loss of momentum. Export volume is expected to drop 2% YoY to 8.5k units in Jul, according to CME. 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 – Export of Excavator Running Out of Steam

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)

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

China Construction Machinery

The European Commission announced yesterday (13 Nov) that it will initiate an anti-dumping proceeding concerning imports of mobile access equipment...

CMB International

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

China Construction Machinery – Export of Excavator Running Out of Steam

Sales in China remained weak with an estimated 49% YoY decline to 4.7k units in Jul, which is not a surprise given the lack of powerful stimulus...

CMB International

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