Zhejiang Dingli’s (Dingli) 3Q25 net profit dropped 15% YoY to RMB542mn, as a result of slow revenue growth along with higher expense. The weaker-thanexpected earnings reaffirmed our cautious stance regarding the weak demand for AWP as well as Dingli’s lack of overseas capacity expansion plan to avoid tariff and AD/CVD. We see downside risks to the consensus forecast. Our TP is unchanged at RMB48, based on 12.8x 2025E P/E (0.5SD below the three-year average P/E). Maintain HOLD.

3Q25 results highlights. Revenue grew 3% YoY to RMB2.3bn. Gross margin slightly contracted 1.5ppts YoY to 36.1%. Selling & distribution expense ratio expanded 0.6ppts YoY to 3.2%, while R&D expense ratio expanded 0.8ppts YoY to 3.5%. Administrative expense was under control, with the expense ratio dropping 0.4ppts YoY to 2%. All these resulted in 7% YoY decrease in EBIT. Net finance expense was RMB37mn (vs net finance income of RMB36mn in 3Q24), due to fx change. Net profit dropped 15% YoY to RMB542mn, while operating cash inflow dropped 40% YoY to RMB355mn. In 9M25, net profit grew 9% YoY to RMB1.6bn, which accounted for 83% of our new full-year net profit forecast (run rate in 9M24: 90%).

Upside risks: (1) reduction of tariffs imposed on China; (2) recovery of AWP demand; (3) potential capacity expansion in overseas.

Downside risks: (1) further intensified competition in China’s AWP market; (2) further weakness of overseas demand.