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>China Construction Machinery Association (CCMA) released a full set of construction machinery sales data for Dec 2024.</li><li>Export volume growth remained strong across all types of machines, in particular truck cranes and tower cranes that surged 67% YoY and 95% YoY respectively.</li><li>In China, overall demand saw little improvement, with excavator being the only product that saw growth in Dec. </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 a full set of construction machinery sales data for Dec 2024.Export volume growth remained strong across all types of machines, in particular truck cranes and tower cranes that surged 67% YoY and 95% YoY respectively.In China, overall demand saw little improvement, with excavator being the only product that saw growth in Dec. 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 - Export Volume Growth Across All Machines in Dec

<ul><li>We expect Chinese construction machinery manufacturers’ global expansion will continue in 2025E, with emerging markets such as the Middle East, Africa, Latin America to offer explosive growth potential across all types of machinery.</li><li>In China, we expect replacement cycle together with stepped-up government stimulus will help stabilize the machinery demand, though we have yet to model aggressive assumptions.</li><li>By segment, we expect excavator will achieve growth in both China and export markets in 2025E, while other machinery will likely see much better growth overseas compared with 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.

We expect Chinese construction machinery manufacturers’ global expansion will continue in 2025E, with emerging markets such as the Middle East, Africa, Latin America to offer explosive growth potential across all types of machinery.In China, we expect replacement cycle together with stepped-up government stimulus will help stabilize the machinery demand, though we have yet to model aggressive assumptions.By segment, we expect excavator will achieve growth in both China and export markets in 2025E, while other machinery will likely see much better growth overseas compared with 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 - 2025 Outlook: Emerging Markets the Key Growth Driver

<ul><li>Three companies reported their 3Q24 results last night (30 Oct).</li><li>SANY Heavy reported better-than-expected earnings driven by strong revenue growth (+19% YoY), while Zoomlion’s profit is below our expectation as strong overseas sales were more than offset by weak China performance.</li><li>Weichai Power reported profit decrease (-4% YoY), but is largely in-line with expectation given the weak HDT and engine demand. </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.

Three companies reported their 3Q24 results last night (30 Oct).SANY Heavy reported better-than-expected earnings driven by strong revenue growth (+19% YoY), while Zoomlion’s profit is below our expectation as strong overseas sales were more than offset by weak China performance.Weichai Power reported profit decrease (-4% YoY), but is largely in-line with expectation given the weak HDT and engine demand. 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 - 3Q24 Earnings Review: SANY Heavy Beat; Zoomlion Missed; Weichai In-Line

<ul><li>China Construction Machinery Association (CCMA) released a full set of construction machinery sales data for Sep.</li><li>For exports, volume growth remained strong in general, in particular for tower cranes, truck cranes and forklifts.</li><li>In China, on the contrary, sales declined across all major products (except excavators), due largely to the weakness of overall economy, in particular property construction activities. </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 a full set of construction machinery sales data for Sep.For exports, volume growth remained strong in general, in particular for tower cranes, truck cranes and forklifts.In China, on the contrary, sales declined across all major products (except excavators), due largely to the weakness of overall economy, in particular property construction activities. 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 - Decent Export Growth; Weak Demand in China

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>Industry wheel loader sales rose 15.2% in Aug, continuing the healthy momentum. A low base in 2H24 will be another favourable factor, and <a href="https://www.smartkarma.com/entities/lonking-holdings-ltd" target="_blank" data-smartkarma-citation="entities:3944:1" rel="noopener">Lonking Holdings (3339 HK)</a> is well placed.   </li>
<li>Forklift outlook will stay strong and serve as a growth engine. There is also a significant pick-up in demand for industry excavator sales in Jul and Aug.</li>
<li>Net cash amounted to 81% of the share price. Including investments, it will increase to 118%. Conservative FY24 consensus earnings forecast means potential upside surprise.</li>
</ul>


Industry wheel loader sales rose 15.2% in Aug, continuing the healthy momentum. A low base in 2H24 will be another favourable factor, and Lonking Holdings (3339 HK) is well placed.   
Forklift outlook will stay strong and serve as a growth engine. There is also a significant pick-up in demand for industry excavator sales in Jul and Aug.
Net cash amounted to 81% of the share price. Including investments, it will increase to 118%. Conservative FY24 consensus earnings forecast means potential upside surprise.


Lonking (3339 HK): Small and Beautiful, Net Cash Equal 81% of Share Price

China

SANY Heavy Industry Co., Ltd manufactures and markets construction and engineering machinery and related parts. The Company produces and sells concrete pumps, concrete pump vehicles, road rollers, pavers, and other related products. Sany Heavy Industry markets its products worldwide.

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Sany Heavy Industry (600031 CH)

Capital Goods - Export Volume Growth Across All Machines in Dec

Export volume growth remained strong across all types of machines, in particular truck cranes and tower cranes that surged 67% YoY and 95% YoY...

CMB International

Capital Goods - 2025 Outlook: Emerging Markets the Key Growth Driver

We expect Chinese construction machinery manufacturers’ global expansion will continue in 2025E, with emerging markets such as the Middle East,...

CMB International

Capital Goods - 3Q24 Earnings Review: SANY Heavy Beat; Zoomlion Missed; Weichai In-Line

SANY Heavy reported better-than-expected earnings driven by strong revenue growth (+19% YoY), while Zoomlion’s profit is below our expectation

CMB International

Capital Goods - Decent Export Growth; Weak Demand in China

We still see some downside risks for our BUY-rated Zoomlion (1157 HK / 000157 CH) due to the deterioration of China’s crane demand that could...

CMB International

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Capital Goods - Export Volume Growth Across All Machines in Dec

Export volume growth remained strong across all types of machines, in particular truck cranes and tower cranes that surged 67% YoY and 95% YoY...

CMB International

Capital Goods - 2025 Outlook: Emerging Markets the Key Growth Driver

We expect Chinese construction machinery manufacturers’ global expansion will continue in 2025E, with emerging markets such as the Middle East,...

CMB International

Capital Goods - 3Q24 Earnings Review: SANY Heavy Beat; Zoomlion Missed; Weichai In-Line

SANY Heavy reported better-than-expected earnings driven by strong revenue growth (+19% YoY), while Zoomlion’s profit is below our expectation

CMB International

Capital Goods - Decent Export Growth; Weak Demand in China

We still see some downside risks for our BUY-rated Zoomlion (1157 HK / 000157 CH) due to the deterioration of China’s crane demand that could...

CMB International

Lonking (3339 HK): Small and Beautiful, Net Cash Equal 81% of Share Price

​Industry wheel loader sales surged in Jul-Aug and the forklift outlook is strong. Current forecasts for Lonking are conservative with an upside...

Osbert Tang, CFA

Industry wheel loader sales surged in Jul-Aug and the forklift outlook is strong. Current forecasts for Lonking are conservative with an upside...