Zhejiang Dingli Machinery - A (603338.SS): Less cyclical compounder with US AI infra upside; assume coverage at OW

We assume coverage of Zhejiang Dingli with an OW rating and Dec-27 price target of Rmb65. Dingli stands out as China's largest aerial work platform (AWP) manufacturer and the world's No.3 player. The company has successfully navigated Anti-Dumping and Countervailing Duties (AD/CVD) and tariff volatility since 2021, delivering resilient revenue and earnings growth through cycles. US AI data-center construction is a key structural growth driver, and US localization from 2028 should mitigate tariff risk and enhance access to the US opportunity. We forecast revenue and net profit CAGRs of 13% and 14% over FY25A-FY28E, driven by overseas expansion, while resilient margins, a net cash balance sheet and consistently high ROE showcase quality. The stock trades at 10.2x FY27E P/E, a discount to its five-year average of 14x, supporting our constructive view.