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.

Equity Bottom-Up

Jiangsu Hengli Highpressure Oil Cylinder / Equity Bottom-Up

<ul><li>Hengli’s EBIT in 3Q24 dropped 6% YoY to RMB445mn, due to gross margin contraction of 1.9ppt YoY despite an 11% YoY increase in revenue.</li><li>The margin contraction, which was due to lower utilisation rate based on our understanding, is slightly below our expectation.</li><li>Reported net profit grew 6% YoY to RMB504mn, helped by increases in net finance income and other gains. </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.

Hengli’s EBIT in 3Q24 dropped 6% YoY to RMB445mn, due to gross margin contraction of 1.9ppt YoY despite an 11% YoY increase in revenue.The margin contraction, which was due to lower utilisation rate based on our understanding, is slightly below our expectation.Reported net profit grew 6% YoY to RMB504mn, helped by increases in net finance income and other gains. 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.

Jiangsu Hengli (601100 CH) - 3Q24 Earnings Below Expectations Due to Margin Contraction

Thematic (Sector/Industry)

<ul><li>The two major earthmoving machinery, excavators and wheel loaders, saw double-digit sales volume growth in Aug, according to China Construction Machinery Association (CCMA).</li><li>Most notable is that exports of excavators grew 7% YoY to ~8k units in Aug, the first YoY growth since May 2023, an early sign of recovery.</li><li>Exports of wheel loaders remained strong with 22% growth in Aug. In China market, sales of excavators grew 18% YoY to 6.7k units in Aug, but the growth rate slowed gradually from 26%/22% in Jun/Jul. </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.

The two major earthmoving machinery, excavators and wheel loaders, saw double-digit sales volume growth in Aug, according to China Construction Machinery Association (CCMA).Most notable is that exports of excavators grew 7% YoY to ~8k units in Aug, the first YoY growth since May 2023, an early sign of recovery.Exports of wheel loaders remained strong with 22% growth in Aug. In China market, sales of excavators grew 18% YoY to 6.7k units in Aug, but the growth rate slowed gradually from 26%/22% in Jun/Jul. 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.

Capital Goods - Excavator Exports Grew for the First Time in 15 Months

<ul><li>Hengli’s EBIT in 2Q24 surged 58% YoY to RMB644mn, driven by acceleration of revenue (+22% YoY) and a surprising gross margin expansion of 6.3ppt YoY.</li><li>Reported net profit grew only 5% YoY to RMB686mn, but largely due to high base effect as large fx gains were recognized in 2Q23.</li><li>We continue to see positive development going forward, as (1) revenue contribution from nonexcavator components continues to increase; (2) delivery of electric cylinders and ball screws (a key component of robots) started in Jul while linear motion saw fast production ramp-up. </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.

Hengli’s EBIT in 2Q24 surged 58% YoY to RMB644mn, driven by acceleration of revenue (+22% YoY) and a surprising gross margin expansion of 6.3ppt YoY.Reported net profit grew only 5% YoY to RMB686mn, but largely due to high base effect as large fx gains were recognized in 2Q23.We continue to see positive development going forward, as (1) revenue contribution from nonexcavator components continues to increase; (2) delivery of electric cylinders and ball screws (a key component of robots) started in Jul while linear motion saw fast production ramp-up. 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.

Jiangsu Hengli (601100 CH) - Revenue Acceleration with Margin Expansion in 2Q24

<ul><li>Both excavators and wheel loaders, the two major earthmoving machinery, saw double-digit growth in China market in May.</li><li>According to China Construction Machinery Association (CCMA), domestic sales of excavators grew 29% YoY to 8.5k units in May, with growth rate accelerating from 9%/13% in Mar/Apr.</li><li>We believe the growth in May was driven by small-size excavators as a result of utilities and municipal projects. </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.

Both excavators and wheel loaders, the two major earthmoving machinery, saw double-digit growth in China market in May.According to China Construction Machinery Association (CCMA), domestic sales of excavators grew 29% YoY to 8.5k units in May, with growth rate accelerating from 9%/13% in Mar/Apr.We believe the growth in May was driven by small-size excavators as a result of utilities and municipal projects. 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.

Capital Goods - Domestic excavator sales +29% YoY in May

<ul><li>Hengli’s net profit in 2023 was +7% YoY to RMB2.5bn, which is -5%/+3% versus our/consensus estimates.</li><li>Net profit in 1Q24 dropped 4% YoY to RMB602mn, due to weak demand for excavators’ hydraulic components and an increased expense ratio.</li><li>We trim our earnings forecast in 2024E/25E by 13%/15%, mainly due to lower volume assumptions for excavator-related products. </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.

Hengli’s net profit in 2023 was +7% YoY to RMB2.5bn, which is -5%/+3% versus our/consensus estimates.Net profit in 1Q24 dropped 4% YoY to RMB602mn, due to weak demand for excavators’ hydraulic components and an increased expense ratio.We trim our earnings forecast in 2024E/25E by 13%/15%, mainly due to lower volume assumptions for excavator-related products. 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.

Jiangsu Hengli (601100 CH) - 4Q23 & 1Q24 Earnings Not Exciting

China

Jiangsu Hengli Hydraulic Co Ltd develops, manufactures and sells high pressure tank, hydraulic components and hydraulic systems. The Company's main products include fuel tanks and non-standard cylinders for heavy equipment.

Jiangsu Hengli Highpressure Oil Cylinder (601100 CH)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Jiangsu Hengli Highpressure Oil Cylinder (601100 CH)

Jiangsu Hengli (601100 CH) - 3Q24 Earnings Below Expectations Due to Margin Contraction

Hengli’s EBIT in 3Q24 dropped 6% YoY to RMB445mn, due to gross margin contraction of 1.9ppt YoY despite an 11% YoY increase in revenue.

CMB International

Capital Goods - Excavator Exports Grew for the First Time in 15 Months

The two major earthmoving machinery, excavators and wheel loaders, saw double-digit sales volume growth in Aug, according to China Construction...

CMB International

Jiangsu Hengli (601100 CH) - Revenue Acceleration with Margin Expansion in 2Q24

Hengli’s EBIT in 2Q24 surged 58% YoY to RMB644mn, driven by acceleration of revenue (+22% YoY) and a surprising gross margin expansion of 6.3ppt YoY.

CMB International

Capital Goods - Domestic excavator sales +29% YoY in May

According to China Construction Machinery Association (CCMA), domestic sales of excavators grew 29% YoY to 8.5k units in May, with growth rate...

CMB International

Jiangsu Hengli (601100 CH) - 4Q23 & 1Q24 Earnings Not Exciting

Hengli’s net profit in 2023 was +7% YoY to RMB2.5bn, which is -5%/+3% versus our/consensus estimates. Net profit in 1Q24 dropped 4% YoY to RMB602mn

CMB International

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)