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>Four companies under our coverage reported their 3Q25 results after market close yesterday (30 Oct). SANY Heavy delivered better-than-expected earnings (+48% YoY), driven by decent expense control.</li><li>Zoomlion’s profit growth of 36% YoY is also above our expectation, driven by growth acceleration in overseas and recovery in China.</li><li>Weichai Power’s net profit grew 29% YoY, driven by strong HDT/engines sales, which is largely in-line with expectation. </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.

Four companies under our coverage reported their 3Q25 results after market close yesterday (30 Oct). SANY Heavy delivered better-than-expected earnings (+48% YoY), driven by decent expense control.Zoomlion’s profit growth of 36% YoY is also above our expectation, driven by growth acceleration in overseas and recovery in China.Weichai Power’s net profit grew 29% YoY, driven by strong HDT/engines sales, which is largely in-line with expectation. 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 - 3Q25 Results First Take: SANY Heavy & Zoomlion Beat; Weichai In-Line

<ul><li>China Construction Machinery Association (CCMA) released over the weekend the full set of construction machinery sales data for Sep.</li><li>Domestic sales of nonearth-moving machinery saw good recovery of sales, suggesting an early sign of the beginning of upcycle (earth-moving machinery upcycle began in 2024).</li><li>Domestic sales of truck cranes and crawler cranes were particular strong (+41%/+67% YoY), while forklift sales remained resilient. </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 over the weekend the full set of construction machinery sales data for Sep.Domestic sales of nonearth-moving machinery saw good recovery of sales, suggesting an early sign of the beginning of upcycle (earth-moving machinery upcycle began in 2024).Domestic sales of truck cranes and crawler cranes were particular strong (+41%/+67% YoY), while forklift sales remained resilient. 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 - Recovery of Non-Earth Moving Machinery Sales in Sep Suggests Early Sign of Upcycle

<ul><li>What’s new? The State Council officially published the “Rural Highway Regulations” (农村公路条例) yesterday, which was approved in late Jun and will come into effect starting from 15 Sep.</li><li>The regulations highlight that rural highway construction should aim to improve road network quality to promote urban-rural transportation integration.</li><li>Most importantly, new rural highways must meet technical standards, and existing roads that do not meet the minimum technical standards must be upgraded.</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.

What’s new? The State Council officially published the “Rural Highway Regulations” (农村公路条例) yesterday, which was approved in late Jun and will come into effect starting from 15 Sep.The regulations highlight that rural highway construction should aim to improve road network quality to promote urban-rural transportation integration.Most importantly, new rural highways must meet technical standards, and existing roads that do not meet the minimum technical standards must be upgraded.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 - Upgrade of rural highways could become a trillion yuan market

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>There is a pick-up in heavy machinery sales in Jun, benefiting <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>, <a href="https://www.smartkarma.com/entities/sany-heavy-equipment-intl" target="_blank" data-smartkarma-citation="entities:11104:1" rel="noopener">Sany Heavy Equipment (631 HK)</a>, and <a href="https://www.smartkarma.com/entities/zoomlion-heavy-industry-h" target="_blank" data-smartkarma-citation="entities:7817:1" rel="noopener">Zoomlion Heavy Industry H (1157 HK)</a>. </li>
<li>Indications are for strong 1H25 earnings, with <a href="https://www.smartkarma.com/entities/guangxi-liugong-machinery-a" target="_blank" data-smartkarma-citation="entities:16809:1" rel="noopener">Guangxi Liugong A (000528 CH)</a> seeing 20-30% growth. 1Q25 results of the peers also pointed to solid interim profit.<a href="https://www.smartkarma.com/entities/sany-heavy-equipment-intl" target="_blank" data-smartkarma-citation="entities:11104:1" rel="noopener"></a>
</li>
<li>Despite an average of a 44.6% rally for the HK-listed companies in the sector, their FY25F PER of 10.4x is undemanding. The current consensus forecasts are too conservative. </li>
</ul>


There is a pick-up in heavy machinery sales in Jun, benefiting Lonking Holdings (3339 HK), Sany Heavy Equipment (631 HK), and Zoomlion Heavy Industry H (1157 HK). 
Indications are for strong 1H25 earnings, with Guangxi Liugong A (000528 CH) seeing 20-30% growth. 1Q25 results of the peers also pointed to solid interim profit.

Despite an average of a 44.6% rally for the HK-listed companies in the sector, their FY25F PER of 10.4x is undemanding. The current consensus forecasts are too conservative. 


China Heavy Machinery Sector: Anticipating More Upside

<ul><li>China Construction Machinery Association (CCMA) released a full set of construction machinery sales data for Apr.</li><li>Similar to the previous month, sales of non-earth-moving machinery were mixed in Apr (vs the strong earth-moving machinery data that was published last week.</li><li>Forklift sales were resilient in general, while tower cranes continued to see a big divergence in domestic sales (-61% YoY) and exports (+49% YoY). </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 Apr.Similar to the previous month, sales of non-earth-moving machinery were mixed in Apr (vs the strong earth-moving machinery data that was published last week.Forklift sales were resilient in general, while tower cranes continued to see a big divergence in domestic sales (-61% YoY) and exports (+49% YoY). 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 - Still a Mixed Picture for Non-Earth-Moving Machinery Sales in Apr

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 - 3Q25 Results First Take: SANY Heavy & Zoomlion Beat; Weichai In-Line

Four companies under our coverage reported their 3Q25 results after market close yesterday (30 Oct). SANY Heavy delivered better-than-expected...

CMB International

Capital Goods - Recovery of Non-Earth Moving Machinery Sales in Sep Suggests Early Sign of Upcycle

China Construction Machinery Association (CCMA) released over the weekend the full set of construction machinery sales data for Sep.

CMB International

Capital Goods - Upgrade of rural highways could become a trillion yuan market

The regulations highlight that rural highway construction should aim to improve road network quality to promote urban-rural transportation...

CMB International

China Heavy Machinery Sector: Anticipating More Upside

Lonking issued a positive profit alert, suggesting that its 1H25 net profit will reach between Rmb590m and Rmb665m, equaling a 29-45% YoY increase....

Osbert Tang, CFA

Capital Goods - Still a Mixed Picture for Non-Earth-Moving Machinery Sales in Apr

Similar to the previous month, sales of non-earth-moving machinery were mixed in Apr (vs the strong earth-moving machinery data that was published...

CMB International

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