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.

Thematic (Sector/Industry)

<ul><li>We forecast SANY Heavy / Zoomlion to deliver net profit growth (excluding FX change) of 40% YoY / 30% YoY in 2Q26, driven by strong machinery sales in general.</li><li>For SANY International (SANYI), we expect a moderate net profit decline (-10% YoY) in 2Q26, with the rate of decline improving from 1Q26’s -20%.</li><li>Meanwhile, given that RMB continued to appreciate against the major currencies in 2Q26 (+6% YoY vs USD; +4% YoY vs EUR), we expect FX loss to be recognized for most of the construction machinery companies, with the actual loss subject to their regional sales breakdown and hedging strategies.</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.

We forecast SANY Heavy / Zoomlion to deliver net profit growth (excluding FX change) of 40% YoY / 30% YoY in 2Q26, driven by strong machinery sales in general.For SANY International (SANYI), we expect a moderate net profit decline (-10% YoY) in 2Q26, with the rate of decline improving from 1Q26’s -20%.Meanwhile, given that RMB continued to appreciate against the major currencies in 2Q26 (+6% YoY vs USD; +4% YoY vs EUR), we expect FX loss to be recognized for most of the construction machinery companies, with the actual loss subject to their regional sales breakdown and hedging strategies.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 - Machinery: 2Q26 earnings preview

<ul><li>Hong Kong market has been under pressure over the past two weeks on concerns over liquidity.</li><li>In order to have a closer look at the fund flows in our coverage universe, we analysed close to 20,000 data points of shareholdings in CCASS (on T+2 basis) between 9 and 23 Jun for five HK-listed names under our coverage, namely Weichai Power-H (2338 HK, BUY), Zoomlion-H (1157 HK, BUY), SANY International (631 HK, BUY), SANY Heavy-H (6031 HK, BUY) and Sinotruk (3808 HK, BUY).</li><li>Our results show a clear trend: US brokers were the major sellers while the Stock Connect was the main buying force.</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.

Hong Kong market has been under pressure over the past two weeks on concerns over liquidity.In order to have a closer look at the fund flows in our coverage universe, we analysed close to 20,000 data points of shareholdings in CCASS (on T+2 basis) between 9 and 23 Jun for five HK-listed names under our coverage, namely Weichai Power-H (2338 HK, BUY), Zoomlion-H (1157 HK, BUY), SANY International (631 HK, BUY), SANY Heavy-H (6031 HK, BUY) and Sinotruk (3808 HK, BUY).Our results show a clear trend: US brokers were the major sellers while the Stock Connect was the main buying force.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 - Who Are Trading the Sector? Implications from CCASS Data (9-23 Jun)

<ul><li>China Construction Machinery Association (CCMA) released the non-earthmoving machinery sales data for May 2026.</li><li>Crawler crane/truck crane sales grew 34%/18% YoY, which reaffirms our view of an upcycle driven by power projects and replacement demand.</li><li>Aerial work platforms (AWPs) grew 30% YoY, with an early sign of recovery in China. </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.

China Construction Machinery Association (CCMA) released the non-earthmoving machinery sales data for May 2026.Crawler crane/truck crane sales grew 34%/18% YoY, which reaffirms our view of an upcycle driven by power projects and replacement demand.Aerial work platforms (AWPs) grew 30% YoY, with an early sign of recovery in China. 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 - Solid Sales of Cranes in May; Early Sign of Recovery for AWPs

<ul><li>What’s new? China Construction Machinery Association (CCMA) released over the weekend the data for earth-moving machinery sales in May 2026.</li><li>Sales (exports + domestic sales) of excavators and loaders grew 36% YoY and 27% YoY respectively.</li><li>Excavators were strong in both domestic sales (+39% YoY) and exports (+34% YoY).</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.

What’s new? China Construction Machinery Association (CCMA) released over the weekend the data for earth-moving machinery sales in May 2026.Sales (exports + domestic sales) of excavators and loaders grew 36% YoY and 27% YoY respectively.Excavators were strong in both domestic sales (+39% YoY) and exports (+34% YoY).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 - Momentum of earth-moving machinery sales continued in May

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>The H-share IPOs of listed A-shares since 2025 witnessed a 6.6pp contraction in HA discount, compared with only 2.7pp for the Hang Seng Stock Connect China AH Premium Index.</li>
<li>
<a href="https://www.smartkarma.com/entities/giga-device-semiconductor-inc-class-h" target="_blank" data-smartkarma-citation="entities:46238:1" rel="noopener">GigaDevice Semiconductor (3986 HK)</a>, <a href="https://www.smartkarma.com/entities/montage-technology-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:46333:1" rel="noopener">Montage Technology (6809 HK)</a>, and <a href="https://www.smartkarma.com/entities/victory-giant-technology-huizhou-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:48083:1" rel="noopener">Victory Giant (2476 HK)</a> are the only 3 with both good discount contraction, fast growth and large size.</li>
<li>
<a href="https://www.smartkarma.com/entities/contemporary-amperex-technology-co-limited-class-h" target="_blank" data-smartkarma-citation="entities:45179:1" rel="noopener">Contemporary Amperex Technology (3750 HK)</a> is large in size but not as fast in growth. <a href="https://www.smartkarma.com/entities/delton-technology" target="_blank" data-smartkarma-citation="entities:47605:1" rel="noopener">Delton Technology (1989 HK)</a>'s market capitalisation is relatively small.  </li>
</ul>


The H-share IPOs of listed A-shares since 2025 witnessed a 6.6pp contraction in HA discount, compared with only 2.7pp for the Hang Seng Stock Connect China AH Premium Index.

GigaDevice Semiconductor (3986 HK), Montage Technology (6809 HK), and Victory Giant (2476 HK) are the only 3 with both good discount contraction, fast growth and large size.

Contemporary Amperex Technology (3750 HK) is large in size but not as fast in growth. Delton Technology (1989 HK)'s market capitalisation is relatively small.  


HK Strategy: H-Share IPOs - Both Growth and Size Count Now

China

Sany Heavy Industry is a Chinese multinational heavy equipment manufacturing company that specializes in manufacturing and marketing construction machinery. Its product range includes concrete machinery, excavators, cranes, road construction machinery, and piling machinery. The company is headquartered in Changsha, Hunan, China, and was founded in 1994.

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Sany Heavy Industry (6031 HK)

Capital Goods - Machinery: 2Q26 earnings preview

We forecast SANY Heavy / Zoomlion to deliver net profit growth (excluding FX change) of 40% YoY / 30% YoY in 2Q26, driven by strong machinery sales...

CMB International

Capital Goods - Who Are Trading the Sector? Implications from CCASS Data (9-23 Jun)

In order to have a closer look at the fund flows in our coverage universe, we analysed close to 20,000 data points of shareholdings in CCASS (on...

CMB International

Capital Goods - Solid Sales of Cranes in May; Early Sign of Recovery for AWPs

Crawler crane/truck crane sales grew 34%/18% YoY, which reaffirms our view of an upcycle driven by power projects and replacement demand.

CMB International

Capital Goods - Momentum of earth-moving machinery sales continued in May

What’s new? China Construction Machinery Association (CCMA) released over the weekend the data for earth-moving machinery sales in May 2026.

CMB International

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Capital Goods - Machinery: 2Q26 earnings preview

We forecast SANY Heavy / Zoomlion to deliver net profit growth (excluding FX change) of 40% YoY / 30% YoY in 2Q26, driven by strong machinery sales...

CMB International

Capital Goods - Who Are Trading the Sector? Implications from CCASS Data (9-23 Jun)

In order to have a closer look at the fund flows in our coverage universe, we analysed close to 20,000 data points of shareholdings in CCASS (on...

CMB International

Capital Goods - Solid Sales of Cranes in May; Early Sign of Recovery for AWPs

Crawler crane/truck crane sales grew 34%/18% YoY, which reaffirms our view of an upcycle driven by power projects and replacement demand.

CMB International

Capital Goods - Momentum of earth-moving machinery sales continued in May

What’s new? China Construction Machinery Association (CCMA) released over the weekend the data for earth-moving machinery sales in May 2026.

CMB International

HK Strategy: H-Share IPOs - Both Growth and Size Count Now

​H-share IPOs of A-shares since 2025 show significant HA discount contraction, with GigaDevice Semiconductor, Montage Technology, and Victory Giant...

Osbert Tang, CFA

H-share IPOs of A-shares since 2025 show significant HA discount contraction, with GigaDevice Semiconductor, Montage Technology, and Victory Giant...