• Buy Entry – 8 Target – 9.6 Stop Loss – 7.2
  • Zoomlion Heavy Industry Science And Technology Co., Ltd. is principally engaged in the research, development, manufacture and sales of engineering equipment, environmental sanitation equipment and agricultural equipment. The company operates through four segments. The Engineering Equipment segment includes concrete equipment, lifting equipment, earthmoving equipment, foundation construction equipment, road construction equipment and forklifts, which mainly serve the construction of infrastructure and real estate. The Environmental Industry segment is engaged in the production of sanitation equipment, as well as environmental management investment and operating business. The Agricultural Equipment segment consists of farming machinery, harvesting machinery, drying machinery and agricultural machinery, among others. The Financial segment provides financial leasing and other financial services.
  • According to the China Construction Machinery Association, a total of 17,345 excavators were sold in July, down 9.24% YoY. Domestic sales fell 24.1% YoY, compared with a fall of 21.9% YoY in June. But exports grew 75.6% YoY in July. July was the third consecutive month of decline. In May and June, excavator sales fell 14.3% YoY and 6.19% YoY respectively. In 1H21, 26 Chinese companies exported 30,133 excavators, up 107% YoY. 
  • The US Senate on Tuesday approved a $1tn bipartisan infrastructure bill after months of negotiations. It could boost the company’s overseas sales of machineries in the next couple of months. 
  • With the ongoing clamp-down on the technology sector, funds try to find safe harbours. Traditional sectors have been seeing consistent fund flows for weeks. 
  • Market consensus of net profit growth in FY21 and FY22 are 10.3% YoY and 12.9% YoY, which implies forward PERs of 6.2x and 5.5x. Current PER is 7.0x. Bloomberg consensus average 12-month target price is HK$12.9.
1157 HK (Source: Bloomberg)
  • Buy Entry – 8 Target – 9.6 Stop Loss – 7.2
  • Zoomlion Heavy Industry Science And Technology Co., Ltd. is principally engaged in the research, development, manufacture and sales of engineering equipment, environmental sanitation equipment and agricultural equipment. The company operates through four segments. The Engineering Equipment segment includes concrete equipment, lifting equipment, earthmoving equipment, foundation construction equipment, road construction equipment and forklifts, which mainly serve the construction of infrastructure and real estate. The Environmental Industry segment is engaged in the production of sanitation equipment, as well as environmental management investment and operating business. The Agricultural Equipment segment consists of farming machinery, harvesting machinery, drying machinery and agricultural machinery, among others. The Financial segment provides financial leasing and other financial services.
  • According to the China Construction Machinery Association, a total of 17,345 excavators were sold in July, down 9.24% YoY. Domestic sales fell 24.1% YoY, compared with a fall of 21.9% YoY in June. But exports grew 75.6% YoY in July. July was the third consecutive month of decline. In May and June, excavator sales fell 14.3% YoY and 6.19% YoY respectively. In 1H21, 26 Chinese companies exported 30,133 excavators, up 107% YoY. 
  • The US Senate on Tuesday approved a $1tn bipartisan infrastructure bill after months of negotiations. It could boost the company’s overseas sales of machineries in the next couple of months. 
  • With the ongoing clamp-down on the technology sector, funds try to find safe harbours. Traditional sectors have been seeing consistent fund flows for weeks. 
  • Market consensus of net profit growth in FY21 and FY22 are 10.3% YoY and 12.9% YoY, which implies forward PERs of 6.2x and 5.5x. Current PER is 7.0x. Bloomberg consensus average 12-month target price is HK$12.9.
1157 HK (Source: Bloomberg)