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>The construction machinery sector was under pressure yesterday (16 Sep).</li><li>Based on our understanding, market was concerned about (1) the US interest rate hike that would affect overseas construction demand; (2) weakness of the latest machinery sales data; and (3) the US’s initiation of antidumping and countervailing duty (AD/CVD) investigations on linear hydraulic cylinders (and parts) from China, Canada, Mexico, Korea and India (source).</li><li>SANY Heavy (600031 CH, BUY), Zoomlion (1157 HK / 000157 CH, BUY) and Jiangsu Hengli (601100 CH, BUY) hosted investor calls yesterday to address the issues. </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.

The construction machinery sector was under pressure yesterday (16 Sep).Based on our understanding, market was concerned about (1) the US interest rate hike that would affect overseas construction demand; (2) weakness of the latest machinery sales data; and (3) the US’s initiation of antidumping and countervailing duty (AD/CVD) investigations on linear hydraulic cylinders (and parts) from China, Canada, Mexico, Korea and India (source).SANY Heavy (600031 CH, BUY), Zoomlion (1157 HK / 000157 CH, BUY) and Jiangsu Hengli (601100 CH, BUY) hosted investor calls yesterday to address the issues. 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 - Key takeaways from investor calls after sector pullback

<ul><li>China Construction Machinery Association (CCMA) released the non-earthmoving machinery sales data for Aug 2026.</li><li>Exports of truck cranes/ crawler cranes grew 25%/5% YoY, but crane sales declined in China due to the weak domestic investment.</li><li>Looking into 4Q26, we expect the overall machinery growth trend to diverge, with overseas/mining-related machinery to deliver better growth while domestic construction-related machinery to remain sluggish. </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 Aug 2026.Exports of truck cranes/ crawler cranes grew 25%/5% YoY, but crane sales declined in China due to the weak domestic investment.Looking into 4Q26, we expect the overall machinery growth trend to diverge, with overseas/mining-related machinery to deliver better growth while domestic construction-related machinery to remain sluggish. 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 - Weak crane sales in Aug due to sluggish China demand

Equity Bottom-Up

<ul><li>In the post-1Q26 results call, Zoomlion explained that the lack of growth in China’s market was due to the continuous shift of focus to overseas.</li><li>On the margin side, Zoomlion attributed the gross margin contraction in 1Q26 to FX, which is a short-term impact as FX gains (related to the previous sales) will be recognized in the upcoming finance income.</li><li>On the other hand, certain largesize product sales in overseas (such as tower cranes and crawler cranes) were only affected by capacity constraint, and therefore delivery of such products in 2Q26 will help both revenue and margin. We believe the overall growth potential in overseas remains attractive. </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.

In the post-1Q26 results call, Zoomlion explained that the lack of growth in China’s market was due to the continuous shift of focus to overseas.On the margin side, Zoomlion attributed the gross margin contraction in 1Q26 to FX, which is a short-term impact as FX gains (related to the previous sales) will be recognized in the upcoming finance income.On the other hand, certain largesize product sales in overseas (such as tower cranes and crawler cranes) were only affected by capacity constraint, and therefore delivery of such products in 2Q26 will help both revenue and margin. We believe the overall growth potential in overseas remains attractive. 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) - Expect an Improvement from 1Q26

<ul><li>Zoomlion’s net profit in 2025 grew 36% YoY to RMB4.8bn, which is 2% above our estimates and in-line with Bloomberg consensus.</li><li>The result implies net profit growth of &gt;1.2x YoY in 4Q25.</li><li>Overseas revenue in 4Q25 surged 60% YoY to RMB9.2bn (accelerated from 34% YoY in 3Q25), which accounted for ~62% of total revenue.</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 2025 grew 36% YoY to RMB4.8bn, which is 2% above our estimates and in-line with Bloomberg consensus.The result implies net profit growth of &gt;1.2x YoY in 4Q25.Overseas revenue in 4Q25 surged 60% YoY to RMB9.2bn (accelerated from 34% YoY in 3Q25), which accounted for ~62% of total revenue.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) - First Take: 2025 Earnings +36% In-Line...

<ul><li>We have received positive feedback on Zoomlion following the publication of our 2026 capital goods sector outlook (link) and investor call this week.</li><li>Based on our understanding, domestic demand for crane and concrete machinery continued to see meaningful recovery in Nov, while earth-moving’s growth remained solid.</li><li>We estimate Zoomlion’s domestic machinery sales growth in Oct-Nov to be 20-30% YoY, accelerating from 13% YoY in 3Q25.</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 received positive feedback on Zoomlion following the publication of our 2026 capital goods sector outlook (link) and investor call this week.Based on our understanding, domestic demand for crane and concrete machinery continued to see meaningful recovery in Nov, while earth-moving’s growth remained solid.We estimate Zoomlion’s domestic machinery sales growth in Oct-Nov to be 20-30% YoY, accelerating from 13% YoY in 3Q25.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) - Expect Accelerated Sales Growth in Nov

China

Zoomlion Heavy Industry Science & Technology Co., Ltd. is a Chinese manufacturer primarily engaged in the research, development, manufacturing, and sales of high-tech equipment, including construction machinery, agricultural machinery, and environmental industry equipment. Its key products encompass cranes, excavators, concrete machinery, and tractors. The company was founded in 1992 and is headquartered in Changsha, Hunan, China.

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Zoomlion (1157 HK)

Capital Goods - Key takeaways from investor calls after sector pullback

Based on our understanding, market was concerned about (1) the US interest rate hike that would affect overseas construction demand; (2) weakness...

CMB International

Capital Goods - Weak crane sales in Aug due to sluggish China demand

Exports of truck cranes/ crawler cranes grew 25%/5% YoY, but crane sales declined in China due to the weak domestic investment.

CMB International

Zoomlion (1157 HK/000157 CH) - Expect an Improvement from 1Q26

In the post-1Q26 results call, Zoomlion explained that the lack of growth in China’s market was due to the continuous shift of focus to overseas.

CMB International

Zoomlion (1157 HK/000157 CH) - First Take: 2025 Earnings +36% In-Line...

Zoomlion’s net profit in 2025 grew 36% YoY to RMB4.8bn, which is 2% above our estimates and in-line with Bloomberg consensus.

CMB International

Zoomlion (1157 HK/000157 CH) - Expect Accelerated Sales Growth in Nov

We have received positive feedback on Zoomlion following the publication of our 2026 capital goods sector outlook (link) and investor call this week.

CMB International

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