External broker reports(aggregated public sources), CMB International

CMB International

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.

External broker reports(aggregated public sources)

Equity Bottom-Up

Jiangsu Hengli Highpressure Oil Cylinder / Equity Bottom-Up

Jiangsu Hengli Highpressure Oil Cylinder (601100 CH)

<ul><li>Hengli’s reported net profit in 4Q24 /1Q25 was -4% YoY /+3% YoY and came in slightly lower than our expectation due to higher administrative expenses.</li><li>That said, the higher expenses were due to the booking of depreciation of Mexico production plant and precision business (ball screws and linear motion) as a result of the transfer of construction-in-progress to fixed assets.</li><li>We finetune our 2025E/26E earnings forecast by -2%. We are staying positive on Hengli and revise up our TP to RMB92 (previously: RMB64), based on 35x 2025E P/E (equivalent to historical average + 1SD) as: (1) we roll over our valuation to 2025E, and (2) we believe humanoid robots components such as ball screws will serve as the important growth driver in the medium term. Maintain BUY</li></ul><p><em>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.</em></p>

Hengli’s reported net profit in 4Q24 /1Q25 was -4% YoY /+3% YoY and came in slightly lower than our expectation due to higher administrative expenses.That said, the higher expenses were due to the booking of depreciation of Mexico production plant and precision business (ball screws and linear motion) as a result of the transfer of construction-in-progress to fixed assets.We finetune our 2025E/26E earnings forecast by -2%. We are staying positive on Hengli and revise up our TP to RMB92 (previously: RMB64), based on 35x 2025E P/E (equivalent to historical average + 1SD) as: (1) we roll over our valuation to 2025E, and (2) we believe humanoid robots components such as ball screws will serve as the important growth driver in the medium term. Maintain BUYContent 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.

Jiangsu Hengli (601100 CH) - Higher Expenses Are Transitory; Eyes on New Products