增长的可持续性仍有待观察。

Sustainability of growth remains to be seen TargetPriceRMB59.00(Previous TPUp/DownsideCurrent PriceRMB57.02 Dingli’s share price surged 10% yesterday (28 Apr)following better-than-expected1Q26 results(strong revenue growth+QoQ gross marginimprovement+lower expense).Take acloserlookat the results, however, couldfind itdifficult to conclude that the highgrowth is sustainable.First, we believethe revenue growth in 1Q26 (30% YoY) included part of the US tariff pass-through.Second,the decline in SG&A expense ratio(through efficiencyenhancement of the US subsidiary) has lasted for several quarters,settinga lowbase for upcoming quarters.Werevise up our 2026E/27E earnings forecastsby China Capital Goods Wayne FUNG, CFA(852) 3900 0826waynefung@cmbi.com.hk 1Q26results highlights.Revenuegrew30% YoY to RMB2.46bn.Grossmargin contracted6.8ppts YoYbutexpanded 5.2pptsQoQto 33.8%(note: 2-month US tariff impact in 1Q26 before the court’s ruling to halt).Given thatboth the SG&A and R&D expenseratio dropped YoY in 1Q26, EBIT grew 38%YoY to RMB609mn. Net finance expense was RMB82mn (vs net financeincome of RMB93mn in1Q26), due toappreciation of RMB. Net profitgrew Latest Anti-dumping (AD), countervailingduties(CVD)and tariff:The USlatest AD rate on Dingliis set at18.27%(effective from 16 Apr 2026), with arate same as Sinoboom, Terex (Changzhou)Machinery (owned by Terex [TEXUS, NR])and Oshkosh JLG(Tianjin)Equipment (owned by Oshkosh [OSKUS]).Thelatest AD, together withtheCVD(33.1%)and Section 301 tariff(25%), adds up to a totalrateof~76% for Dingli’s AWPsselling into the US. Upside risks:(1) recovery of AWP demand; (2)strong demand for newproducts. Source: FactSet Related reports:Capital Goods–Strong export of earth- Downside risks:(1) further intensified competition in China’s AWP market; moving machinery in Feb–9 Mar 2026(link) Capital Goods-Strong momentum ofnon-earth-moving machinery sales in Jan–16 Feb 2026 (link) Dingli–3Q25 netprofit-15% YoY, belowexpectations–30 Oct 2025 (link) Source: Bloomberg, company data, CMBIGMestimates Source: Bloomberg, company data, CMBIGMestimates Disclosures& Disclaimers Analyst Certification Theresearch analyst who is primary responsible for the content of this research report, in whole or in part, certifies that withrespect to the securities or issuerthat the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer; and (2)no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report.Besides, the analyst confirmsthat neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and Futures Commission) (1) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to thedate of issue of this report; (2) willdeal in or trade in the stock(s) covered in this research report 3 business days after the date of issue of this report; (3)serve as an officer of any of the HongKong listed companies covered in this report; and (4)have any financial interests in the Hong Kong listed companies covered in this report. CMBIGM Ratings BUY: Stock with potential return of over 15% over next 12 monthsHOLD: Stock with potential return of +15% to-10% over next 12 monthsSELL: Stock with potential loss of over 10% over next 12 monthsNOT RATED: Stock is not rated byCMBIGM OUTPERFORM:Industry expected to outperform the relevant broad market benchmark over next 12 monthsMARKET-PERFORM:Industry expected to perform in-line with the relevant broad market benchmark over next 12 monthsUNDERPERFORM:Industry expected to underperform the relevant broad market benchmark over next 12 months Address: 45/F, Champion Tower, 3 Garden Road, Hong Kong, Tel: (852) 3900 0888 Fax: (852) 3900 0800CMB InternationalGlobal MarketsLimited (“CMBIGM”) is a wholly owned subsidiary of CMB International Capital Corporation Limited (a whollyowned Important Disclosures There are risks involved in transacting in any securities. The information contained in this report may not be suitable forthe purposes of all investors.CMBIGMdoes not provide individually tailored investment advice. This report has been prepared without regard to the individual investment objectives, financial positionor special requirements. Past performance has no indication of future performance, and actual events may differ materially from that which is contained in thereport.The value of, and returns from, any investments are uncertain and are not guaranteed and may fluctuate as a result of their dependence on the or its affiliate(s) to whom it is distributed.This report is not and should not be construed as anoffer or solicitation to buy or sell any security or any interest insecurities or enter into any transaction.NeitherCMBIGMnor any of its affiliates, shareholders, agents, consu