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

Thematic (Sector/Industry)

<ul><li>We expect the rally of the construction machinery sector to continue, given more policy details released earlier by the Ministry of Housing and Urban-Rural Development to support the replacement and upgrade of machinery.</li><li>Besides, the NDRC mentioned in a press conference yesterday (17 Apr) that the authority has completed the preliminary screening for the local government special bond projects.</li><li>We believe all these will gradually help improve the domestic machinery demand. Our short-term pecking order in the construction machinery space is Zhejiang Dingli (603338 CH, BUY), Zoomlion (1157 HK/000157 CH, HOLD), Jiangsu Hengli (601100 CH, BUY) and SANY Heavy (600031 CH, HOLD).</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 the rally of the construction machinery sector to continue, given more policy details released earlier by the Ministry of Housing and Urban-Rural Development to support the replacement and upgrade of machinery.Besides, the NDRC mentioned in a press conference yesterday (17 Apr) that the authority has completed the preliminary screening for the local government special bond projects.We believe all these will gradually help improve the domestic machinery demand. Our short-term pecking order in the construction machinery space is Zhejiang Dingli (603338 CH, BUY), Zoomlion (1157 HK/000157 CH, HOLD), Jiangsu Hengli (601100 CH, BUY) and SANY Heavy (600031 CH, HOLD).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 - More Policies to Support Domestic Machinery Demand

<ul><li>China Construction Machinery Association (CCMA) released a full set of construction machinery sales data for Feb 2024.</li><li>Combining the sales figures in 2M24 (to remove the Lunar New Year effect), most of the machines (except forklifts) reported YoY declines.</li><li>Tower cranes/excavators reported a 49%/22% YoY decline in sales volume. Therefore, we are still cautious on SANY Heavy (600031 CH, HOLD) due to its high exposure to excavators and slowing exports. We also maintain our conservative view on Zoomlion (1157 HK/000157 CH, HOLD), as weak property-related machinery demand in China may offset the strong growth in exports. </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 Feb 2024.Combining the sales figures in 2M24 (to remove the Lunar New Year effect), most of the machines (except forklifts) reported YoY declines.Tower cranes/excavators reported a 49%/22% YoY decline in sales volume. Therefore, we are still cautious on SANY Heavy (600031 CH, HOLD) due to its high exposure to excavators and slowing exports. We also maintain our conservative view on Zoomlion (1157 HK/000157 CH, HOLD), as weak property-related machinery demand in China may offset the strong growth in exports. 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 - 2M24: Solid Growth of Forklifts

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

China Construction Machinery - More Policies to Support Domestic Machinery Demand

We expect the rally of the construction machinery sector to continue, given more policy details released earlier by the Ministry of Housing and...

CMB International

Capital Goods - 2M24: Solid Growth of Forklifts

Combining the sales figures in 2M24 (to remove the Lunar New Year effect), most of the machines (except forklifts) reported YoY declines.

CMB International