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>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

<ul><li>China Construction Machinery Association (CCMA) released the earth-moving machinery sales data for Mar.</li><li>Domestic sales of excavators / wheel loaders grew 29%/23% YoY, suggesting strong demand in the traditional peak season.</li><li>We believe excavator offers resilience with growth driven largely by the domestic replacement demand, which is less affected by the tariff war. </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 earth-moving machinery sales data for Mar.Domestic sales of excavators / wheel loaders grew 29%/23% YoY, suggesting strong demand in the traditional peak season.We believe excavator offers resilience with growth driven largely by the domestic replacement demand, which is less affected by the tariff war. 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 - Strong Domestic Sales of Earth-Moving Machinery in Mar

<ul><li>The €500bn infrastructure plan proposed by Friedrich Merz, German Chancellor-in-waiting, is scheduled for parliament approval on 18 Mar.</li><li>The approval of the plan has become likely (2/3 is needed) after winning support from the Greens last week.</li><li>In HK &amp; A share market, Weichai Power (2338 HK / 000338 CH, BUY), being the controlling shareholder of KION Group (KGX GR, NR) which is the major industrial truck manufacturer in Europe, will likely become a beneficiary. </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 €500bn infrastructure plan proposed by Friedrich Merz, German Chancellor-in-waiting, is scheduled for parliament approval on 18 Mar.The approval of the plan has become likely (2/3 is needed) after winning support from the Greens last week.In HK &amp; A share market, Weichai Power (2338 HK / 000338 CH, BUY), being the controlling shareholder of KION Group (KGX GR, NR) which is the major industrial truck manufacturer in Europe, will likely become a beneficiary. 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.

Who Are the Potential Beneficiaries of Germany’s Mega Infrastructure Investment Plan?

<ul><li>China Construction Machinery Association (CCMA) released a full set of construction machinery sales data for Feb.</li><li>Unlike the stronger-than-expected earth-moving machinery (excavator and wheel loader) data that released last week (CMBI report: link), the picture for other machinery was unclear.</li><li>Forklifts and truck cranes saw growth in both domestic and overseas markets, while tower cranes (highly related to property) / aerial work platforms (AWPs) saw 33%/24% decline in China market despite a low base. </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.Unlike the stronger-than-expected earth-moving machinery (excavator and wheel loader) data that released last week (CMBI report: link), the picture for other machinery was unclear.Forklifts and truck cranes saw growth in both domestic and overseas markets, while tower cranes (highly related to property) / aerial work platforms (AWPs) saw 33%/24% decline in China market despite a low base. 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 - Non-earth-moving machinery sales data mixed in Feb

<ul><li>China Construction Machinery Association (CCMA) released the earth-moving machinery sales data for Jan 2025.</li><li>Despite an early CNY this year, sales of excavators / wheel loaders still edged up 1%/2% YoY, which suggest resilient demand.</li><li>We expect a decent export growth and the upcycle of domestic replacement demand will continue for earth-moving machinery this year. In addition, given the traditional peak season in Mar, we see chances for construction machinery names to gain traction over the coming two months. </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 earth-moving machinery sales data for Jan 2025.Despite an early CNY this year, sales of excavators / wheel loaders still edged up 1%/2% YoY, which suggest resilient demand.We expect a decent export growth and the upcycle of domestic replacement demand will continue for earth-moving machinery this year. In addition, given the traditional peak season in Mar, we see chances for construction machinery names to gain traction over the coming two months. 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 - A Good Start for Earth-Moving Machinery Sales in Jan

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 - 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

Capital Goods - Strong Domestic Sales of Earth-Moving Machinery in Mar

We also like Zoomlion (1157 HK / 000157 CH, BUY) given its strategic focus on emerging markets (the US contributes <1% of revenue).

CMB International

Who Are the Potential Beneficiaries of Germany’s Mega Infrastructure Investment Plan?

The €500bn infrastructure plan proposed by Friedrich Merz, German Chancellor-in-waiting, is scheduled for parliament approval on 18 Mar.

CMB International

Capital Goods - Non-earth-moving machinery sales data mixed in Feb

We continue to favour earth-moving machinery which is the first to recover in both the project-level cycle and replacement cycle.

CMB International

Capital Goods - A Good Start for Earth-Moving Machinery Sales in Jan

We remain positive on Zoomlion (1157 HK / 000157 CH, BUY), SANY Heavy (600031 CH, BUY) and Jiangsu Hengli (601100 CH, BUY).

CMB International

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