Zhejiang Dingli MachineryLtd (SHSE:603338) - Share price, News & Analysis

Q: What is the Fair Price of 603338 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

603338 (CN¥51.21) is trading below our estimate of [[fair value]] (CN¥144.52)

603338 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	3/6
Financial Health	5/6
Dividends	2/6

603338 Stock Overview

Zhejiang Dingli Machinery Co.,Ltd develops, manufactures, sells, and services various aerial working platforms in China, Europe, the United States, Asia, and Africa.

Rewards

Trading at 64.6% below our estimate of its fair value

Earnings are forecast to grow 23.72% per year

Earnings grew by 27.8% over the past year

Risk Analysis

High level of non-cash earnings

Dividend of 0.66% is not well covered by earnings

Shareholders have been diluted in the past year

Zhejiang Dingli MachineryLtd Competitors

Zhengzhou Coal Mining Machinery Group

SHSE:601717

CN¥25.0b

XCMG Construction Machinery

SZSE:000425

CN¥43.4b

Sinotruk Jinan Truck

SZSE:000951

CN¥16.8b

Zoomlion Heavy Industry Science and Technology

SZSE:000157

CN¥51.5b

Price History & Performance

Summary of all time highs, changes and price drops for Zhejiang Dingli MachineryLtd
Historical stock prices
Current Share Price	CN¥51.21
52 Week High	CN¥88.88
52 Week Low	CN¥32.16
Beta	1.15
1 Month Change	8.08%
3 Month Change	13.45%
1 Year Change	-10.10%
3 Year Change	23.93%
5 Year Change	119.08%
Change since IPO	725.23%

Shareholder Returns

	603338	CN Machinery	CN Market
7D	5.7%	1.4%	1.3%
1Y	-10.1%	0.03%	-6.8%

Return vs Industry: 603338 underperformed the CN Machinery industry which returned 0% over the past year.

Return vs Market: 603338 underperformed the CN Market which returned -6.8% over the past year.

Price Volatility

Is 603338's price volatile compared to industry and market?
603338 volatility
603338 Average Weekly Movement	7.2%
Machinery Industry Average Movement	7.2%
Market Average Movement	7.2%
10% most volatile stocks in CN Market	10.2%
10% least volatile stocks in CN Market	5.0%

Stable Share Price: 603338 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 603338's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2005	1,766	Shu Xu	https://www.cndingli.com

Zhejiang Dingli Machinery Co.,Ltd develops, manufactures, sells, and services various aerial working platforms in China, Europe, the United States, Asia, and Africa. It offers electric and engine boom, engine and electric scissor, electric vertical, telescopic boom, and articulating boom lifts, as well as electric aerial stock pickers and mast-climbers. The company’s products are used in construction, commercial, and industrial applications.

Zhejiang Dingli MachineryLtd Fundamentals Summary

How do Zhejiang Dingli MachineryLtd's earnings and revenue compare to its market cap?
603338 fundamental statistics
Market Cap	CN¥25.93b
Earnings (TTM)	CN¥910.09m
Revenue (TTM)	CN¥5.35b

28.5x

P/E Ratio

4.8x

P/S Ratio

Is 603338 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
603338 income statement (TTM)
Revenue	CN¥5.35b
Cost of Revenue	CN¥3.79b
Gross Profit	CN¥1.56b
Other Expenses	CN¥651.05m
Earnings	CN¥910.09m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.80
Gross Margin	29.17%
Net Profit Margin	17.01%
Debt/Equity Ratio	17.3%

How did 603338 perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

18%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 603338 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603338?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 603338. This is calculated by dividing 603338's market cap by their current preferred multiple.
What is 603338's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥25.93b

603338 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.5x
Enterprise Value/EBITDA	20.1x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

How does 603338's PE Ratio compare to its peers?

603338 PE Ratio vs Peers

The above table shows the PE ratio for 603338 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	15.8x
601717 Zhengzhou Coal Mining Machinery Group	13x	17.8%	CN¥25.0b
000425 XCMG Construction Machinery	8.2x	8.0%	CN¥43.4b
000951 Sinotruk Jinan Truck	30x	22.0%	CN¥16.8b
000157 Zoomlion Heavy Industry Science and Technology	11.8x	13.7%	CN¥51.5b
603338 Zhejiang Dingli MachineryLtd	28.5x	23.7%	CN¥25.9b

Forward PE

Price-To-Earnings vs Peers: 603338 is expensive based on its Price-To-Earnings Ratio (28.5x) compared to the peer average (15.8x).

Price to Earnings Ratio vs Industry

How does 603338's PE Ratio compare vs other companies in the CN Machinery Industry?

Price-To-Earnings vs Industry: 603338 is good value based on its Price-To-Earnings Ratio (28.5x) compared to the CN Machinery industry average (33.7x)

Price to Earnings Ratio vs Fair Ratio

What is 603338's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

603338 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	28.5x
Fair PE Ratio	28.5x

Price-To-Earnings vs Fair Ratio: 603338 is expensive based on its Price-To-Earnings Ratio (28.5x) compared to the estimated Fair Price-To-Earnings Ratio (28.5x).

Share Price vs Fair Value

What is the Fair Price of 603338 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603338 (CN¥51.21) is trading below our estimate of fair value (CN¥144.52)

Significantly Below Fair Value: 603338 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 603338 is poor value based on its PEG Ratio (1.2x)

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Future Growth

How is Zhejiang Dingli MachineryLtd forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

23.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 603338's forecast earnings growth (23.7% per year) is above the savings rate (3.2%).

Earnings vs Market: 603338's earnings (23.7% per year) are forecast to grow slower than the CN market (23.9% per year).

High Growth Earnings: 603338's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 603338's revenue (19.4% per year) is forecast to grow faster than the CN market (17.5% per year).

High Growth Revenue: 603338's revenue (19.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 603338's Return on Equity is forecast to be low in 3 years time (18.4%).

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Past Performance

How has Zhejiang Dingli MachineryLtd performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

25.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 603338 has a high level of non-cash earnings.

Growing Profit Margin: 603338's current net profit margins (17%) are lower than last year (21%).

Past Earnings Growth Analysis

Earnings Trend: 603338's earnings have grown significantly by 25.2% per year over the past 5 years.

Accelerating Growth: 603338's earnings growth over the past year (27.8%) exceeds its 5-year average (25.2% per year).

Earnings vs Industry: 603338 earnings growth over the past year (27.8%) exceeded the Machinery industry 2.5%.

Return on Equity

High ROE: 603338's Return on Equity (14.7%) is considered low.

Discover strong past performing companies

Financial Health

How is Zhejiang Dingli MachineryLtd's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 603338's short term assets (CN¥7.3B) exceed its short term liabilities (CN¥3.0B).

Long Term Liabilities: 603338's short term assets (CN¥7.3B) exceed its long term liabilities (CN¥439.0M).

Debt to Equity History and Analysis

Debt Level: 603338 has more cash than its total debt.

Reducing Debt: 603338's debt to equity ratio has increased from 5.4% to 17.3% over the past 5 years.

Debt Coverage: 603338's debt is well covered by operating cash flow (48.6%).

Interest Coverage: 603338 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Zhejiang Dingli MachineryLtd current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.66%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 603338's dividend (0.66%) is higher than the bottom 25% of dividend payers in the CN market (0.48%).

High Dividend: 603338's dividend (0.66%) is low compared to the top 25% of dividend payers in the CN market (1.92%).

Stability and Growth of Payments

Stable Dividend: 603338 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 603338's dividend payments have increased, but the company has only paid a dividend for 7 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (18.3%), 603338's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (316.3%), 603338's dividend payments are not well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

10.9yrs

Average board tenure

CEO

Shu Xu (55 yo)

no data

Tenure

CN¥920,000

Compensation

Mr. Shu Gen Xu serves as the Chairman and General Manager of Zhejiang Dingli Machinery Co., Ltd. and serves as its Director since August 20, 2011.

Board Members

Experienced Board: 603338's board of directors are seasoned and experienced ( 10.9 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31