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

Zoomlion Heavy Industry H / Equity Bottom-Up

<ul><li>Zoomlion’s 2024 results were weaker than our expectation, due to a slowdown of overseas revenue growth (14%) in 4Q24, reduction of other income, and increase in inventory turnover days.</li><li>While we revise down our 2025E/26E earnings forecast by 7%/8%, after incorporating lower sales volume growth and higher distribution expenses due to overseas expansion, we remain positive on Zoomlion’s structural overseas growth strategy with priorities on emerging economies.</li><li>On inventory, management is confident of a reduction of the inventory level in 2025E. </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.

Zoomlion’s 2024 results were weaker than our expectation, due to a slowdown of overseas revenue growth (14%) in 4Q24, reduction of other income, and increase in inventory turnover days.While we revise down our 2025E/26E earnings forecast by 7%/8%, after incorporating lower sales volume growth and higher distribution expenses due to overseas expansion, we remain positive on Zoomlion’s structural overseas growth strategy with priorities on emerging economies.On inventory, management is confident of a reduction of the inventory level in 2025E. 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.

Zoomlion (1157 HK/000157 CH) - 2024 Results Below Expectation

Zoomlion Heavy Industry S A / Equity Bottom-Up

<ul><li>Zoomlion’s overseas sales remained strong in 2Q24 but were more than offset by the weakness in China.</li><li>We calculate that the core profit in 1H24 (after excluding gains on asset disposal) dropped 18% YoY to RMB1.65bn.</li><li>We revise down our 2024E-26E earnings forecast by 9.6-10.0%, after incorporating the weak demand for concrete machinery and cranes in China, as well as higher distribution expenses due to overseas expansion. </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.

Zoomlion’s overseas sales remained strong in 2Q24 but were more than offset by the weakness in China.We calculate that the core profit in 1H24 (after excluding gains on asset disposal) dropped 18% YoY to RMB1.65bn.We revise down our 2024E-26E earnings forecast by 9.6-10.0%, after incorporating the weak demand for concrete machinery and cranes in China, as well as higher distribution expenses due to overseas expansion. 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.

Zoomlion (000157 CH) - 1H24 Earnings Below Expectation

Thematic (Sector/Industry)

<ul><li>China Construction Machinery Association (CCMA) released the earth-moving machinery sales data for Apr.</li><li>Domestic sales of excavators / wheel loaders grew 16%/35% YoY, which we believe were driven by municipal and rural construction projects.</li><li>Meanwhile, export growth of excavator sales accelerated to 19% YoY in Apr, the highest over the past two years, though we are unsure if the sales were boosted by any tariff-related factors.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.</li></ul>

China Construction Machinery Association (CCMA) released the earth-moving machinery sales data for Apr.Domestic sales of excavators / wheel loaders grew 16%/35% YoY, which we believe were driven by municipal and rural construction projects.Meanwhile, export growth of excavator sales accelerated to 19% YoY in Apr, the highest over the past two years, though we are unsure if the sales were boosted by any tariff-related factors.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 Growth of Earth-Moving Machinery Sales in Apr

<ul><li>We have summarized the selected global machinery manufacturers’ estimates about the impact of US tariffs.</li><li>Most players expect the impact will materialize starting from 3Q should the tariffs be in place.</li><li>Based on the numbers provided, Komatsu (6301 JP, NR) seems to be taking a relatively large hit among the major names. </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 have summarized the selected global machinery manufacturers’ estimates about the impact of US tariffs.Most players expect the impact will materialize starting from 3Q should the tariffs be in place.Based on the numbers provided, Komatsu (6301 JP, NR) seems to be taking a relatively large hit among the major names. 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 - Major global players’ forecast about tariff impact

<ul><li>Three companies under our coverage reported their 1Q25 results last night (29 Apr).</li><li>SANY Heavy delivered better-than-expected earnings (+56% YoY) driven by strong revenue growth (+18% YoY) and good expense control.</li><li>Zoomlion’s core profit is slightly below our expectation but its overseas sales growth remained encouraging. </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 under our coverage reported their 1Q25 results last night (29 Apr).SANY Heavy delivered better-than-expected earnings (+56% YoY) driven by strong revenue growth (+18% YoY) and good expense control.Zoomlion’s core profit is slightly below our expectation but its overseas sales growth remained encouraging. 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 - 1Q25 Earnings: SANY Heavy Beat; Zoomlion & Weichai Slightly Below Expectation

China

Zoomlion Heavy Industry Science and Technology Co., Ltd.manufactures and markets construction machinery.  The Company's products include concrete machinery, cranes, road machinery, drilling equipment, and other heavy construction equipment.  Zoomlion also produces environmental machinery and satellite navigation products.

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Zoomlion Heavy Industry H (1157 HK)

Zoomlion (1157 HK/000157 CH) - 2024 Results Below Expectation

Zoomlion’s 2024 results were weaker than our expectation, due to a slowdown of overseas revenue growth (14%) in 4Q24, reduction of other income,...

CMB International

Zoomlion (000157 CH) - 1H24 Earnings Below Expectation

Our TP for Zoomlion A/H is revised down to RMB10.5/HK$6.8 with 2024E target P/E multiple unchanged at 22x/13x. Maintain BUY.

CMB International

Capital Goods - Solid Growth of Earth-Moving Machinery Sales in Apr

China Construction Machinery Association (CCMA) released the earth-moving machinery sales data for Apr. Domestic sales of excavators / wheel...

CMB International

Capital Goods - Major global players’ forecast about tariff impact

We have summarized the selected global machinery manufacturers’ estimates about the impact of US tariffs. Most players expect the impact will...

CMB International

Capital Goods - 1Q25 Earnings: SANY Heavy Beat; Zoomlion & Weichai Slightly Below Expectation

SANY Heavy delivered better-than-expected earnings (+56% YoY) driven by strong revenue growth (+18% YoY) and good expense control.

CMB International

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