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>We are convinced by Zoomlion’s impressive global expansion strategy.</li><li>On the product side, the offering of full range of machinery through an effective direct sales model enables Zoomlion to penetrate different key markets in overseas.</li><li>On regions, the priorities on emerging economies such as the Middle East, Middle Asia and Southeast Asia over Europe and North America make it subject to less geopolitical risks. </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 are convinced by Zoomlion’s impressive global expansion strategy.On the product side, the offering of full range of machinery through an effective direct sales model enables Zoomlion to penetrate different key markets in overseas.On regions, the priorities on emerging economies such as the Middle East, Middle Asia and Southeast Asia over Europe and North America make it subject to less geopolitical risks. 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) - Right Strategy on Product & Global Expansion

Zoomlion Heavy Industry S A / Equity Bottom-Up

<ul><li>Zoomlion’s net profit in 2023 grew 51% YoY to RMB3.55bn, in line with the preannounced profit range of RMB3.38-3.62bn.</li><li>Zoomlion proposed dividends of RMB0.32/shr, implying a payout ratio of 78%.</li><li>With successful global growth strategy, overseas revenue contribution in 2H23 increased to 42%, up from 35%/24% in 1H23/2022. </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 net profit in 2023 grew 51% YoY to RMB3.55bn, in line with the preannounced profit range of RMB3.38-3.62bn.Zoomlion proposed dividends of RMB0.32/shr, implying a payout ratio of 78%.With successful global growth strategy, overseas revenue contribution in 2H23 increased to 42%, up from 35%/24% in 1H23/2022. 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) - 2023 Net Profit in Line; Overseas Strategy a Successful Pay-Off

<ul><li>Zoomlion’s net profit in 2Q23 grew 50% YoY to RMB1.2bn, which is in line with our expectations.</li><li>The growth was driven by 21% YoY revenue growth (to RMB13.7bn), and 7.6ppt YoY (2.7ppt QoQ) expansion of gross margin to 29%.</li><li>We continue to like Zoomlion’s diversified product offerings and outstanding growth of AWP and excavators. Maintain BUY with TP of HK$6.35.</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 net profit in 2Q23 grew 50% YoY to RMB1.2bn, which is in line with our expectations.The growth was driven by 21% YoY revenue growth (to RMB13.7bn), and 7.6ppt YoY (2.7ppt QoQ) expansion of gross margin to 29%.We continue to like Zoomlion’s diversified product offerings and outstanding growth of AWP and excavators. Maintain BUY with TP of HK$6.35.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) – 2Q23 Net Profit +50% YoY in Line with Expectations

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>
<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>'s demand should pick up in 2H24 supported by the government's "Action plan to promote large-scale equipment renewals and consumer goods trade-ins". </li>
<li>Industry volume sales have already witnessed a narrower YoY decline in Mar, with solid exports of wheel loaders and domestic sales of excavators.</li>
<li>After going ex- in late-May, its PER will drop to 7.0x and yield will rise to 6.6%. Net cash of HK$1.56/share is more than fully cover its share price.</li>
</ul>



Lonking Holdings (3339 HK)'s demand should pick up in 2H24 supported by the government's "Action plan to promote large-scale equipment renewals and consumer goods trade-ins". 
Industry volume sales have already witnessed a narrower YoY decline in Mar, with solid exports of wheel loaders and domestic sales of excavators.
After going ex- in late-May, its PER will drop to 7.0x and yield will rise to 6.6%. Net cash of HK$1.56/share is more than fully cover its share price.


<ul>
<li>After a poor FY22, 1H23 will stay challenging for <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>. However, we expect pick-up in business momentum going forward, and export is a major growth driver.</li>
<li>Gross margin rebounded HoH and YoY in 2H22, and Lonking maintained good operating cost control. Recovery of equity market suggests potential big positive swing in investment income. </li>
<li>Including investment portfolio, 92% of the current market capitalisation is net cash, providing solid downside buffer. Its 6.5x PER, 9.2% yield and 0.52x P/B are very attractive valuations.</li>
</ul>


After a poor FY22, 1H23 will stay challenging for Lonking Holdings (3339 HK). However, we expect pick-up in business momentum going forward, and export is a major growth driver.
Gross margin rebounded HoH and YoY in 2H22, and Lonking maintained good operating cost control. Recovery of equity market suggests potential big positive swing in investment income. 
Including investment portfolio, 92% of the current market capitalisation is net cash, providing solid downside buffer. Its 6.5x PER, 9.2% yield and 0.52x P/B are very attractive valuations.


Lonking (3339 HK): Back to Attractive Zone

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.

Zoomlion Heavy Industry S A (000157 CH)

Zoomlion (1157 HK) - Right Strategy on Product & Global Expansion

We are convinced by Zoomlion’s impressive global expansion strategy. On the product side, the offering of full range of machinery through an...

CMB International

Zoomlion (000157 CH) - 2023 Net Profit in Line; Overseas Strategy a Successful Pay-Off

Zoomlion’s net profit in 2023 grew 51% YoY to RMB3.55bn, in line with the preannounced profit range of RMB3.38-3.62bn. Zoomlion proposed dividends...

CMB International

Zoomlion (1157 HK) – 2Q23 Net Profit +50% YoY in Line with Expectations

The growth was driven by 21% YoY revenue growth (to RMB13.7bn), and 7.6ppt YoY (2.7ppt QoQ) expansion of gross margin to 29%.

CMB International

Lonking (3339 HK): Policy Tailwind

Government policy support and improving industry demand should drive a potential uptick in sales for Lonking in 2H24. Attractive valuations and a...

Osbert Tang, CFA

Lonking (3339 HK): Back to Attractive Zone

We turned bullish on Lonking on 17 Apr, and since then, the stock has performed well. It has just issued a positive profit alert with 91-158% YoY...

Osbert Tang, CFA