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.

Equity Bottom-Up

Horizon Construction Development / Equity Bottom-Up

<ul><li>Horizon CD’s core net profit in 1H24 dropped 16% YoY to RMB268mn, largely in line with our expectation.</li><li>Horizon CD proposed HK$0.04/ share of interim dividend, the first time since listing.</li><li>While Horizon CD maintains the asset-light model for its aerial work platform (AWP) leasing business in China, it is expanding the equipment portfolio through investing in material handling equipment and mining equipment, which took its capex up 3.6x YoY to RMB4.4bn in 1H24. </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.

Horizon CD’s core net profit in 1H24 dropped 16% YoY to RMB268mn, largely in line with our expectation.Horizon CD proposed HK$0.04/ share of interim dividend, the first time since listing.While Horizon CD maintains the asset-light model for its aerial work platform (AWP) leasing business in China, it is expanding the equipment portfolio through investing in material handling equipment and mining equipment, which took its capex up 3.6x YoY to RMB4.4bn in 1H24. 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.

Horizon CD (9930 HK) - Back to Capex Growth Model

<ul>
<li>Horizon CD’s core net profit in 2023 grew 10% YoY to RMB1bn, in line with our expectation.</li>
<li>While the lack of dividend payout is disappointing given that positive free cash flow is achieved, we believe the 15% share price pullback yesterday was overdone.</li>
<li>We revise down our 2024E-25E earnings forecast by 6-7%.</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.


Horizon CD’s core net profit in 2023 grew 10% YoY to RMB1bn, in line with our expectation.
While the lack of dividend payout is disappointing given that positive free cash flow is achieved, we believe the 15% share price pullback yesterday was overdone.
We revise down our 2024E-25E earnings forecast by 6-7%.

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.

Horizon CD (9930 HK) - 2023 Earnings in Line; 15% Share Price Pullback Looks Overdone

<ul><li>Horizon CD’s share price declined 50% over the past two days, which we believe was a result of share sales from some shareholders of FE Horizon (3360 HK) who need to cash in, regardless of share price level, to fulfil their own financial purposes.</li><li>While we are surprised by the lack of buying force, our analysis suggests that it would only take another 2-3 days to digest the selling pressure.</li><li>We see the sharp pullback a buying opportunity as the sell-off is not fundamentally driven. Horizon CD is trading at 5x 2024E P/E, which is attractive in our view. </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.

Horizon CD’s share price declined 50% over the past two days, which we believe was a result of share sales from some shareholders of FE Horizon (3360 HK) who need to cash in, regardless of share price level, to fulfil their own financial purposes.While we are surprised by the lack of buying force, our analysis suggests that it would only take another 2-3 days to digest the selling pressure.We see the sharp pullback a buying opportunity as the sell-off is not fundamentally driven. Horizon CD is trading at 5x 2024E P/E, which is attractive in our view. 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.

Horizon CD (9930 HK) – Sell-Off Unjustified; Expect Pressure to End in 2-3 Days

Thematic (Sector/Industry)

<ul><li>What is new? On 23 Nov, SANY AWP (三一高空机械) signed an agreement with the municipal government of Huzhou, Zhejiang (source).</li><li>According to the agreement, SANY AWP will spend &gt;RMB10bn to build a production base for aerial work platform (AWP) and research centre in Wuxing District, Huzhou.</li><li>Upon the completion of the construction, the annual capacity of AWP is expected to reach 150k units, covering various types of boom lift, scissors lift and large-size intelligent AWP models.</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 is new? On 23 Nov, SANY AWP (三一高空机械) signed an agreement with the municipal government of Huzhou, Zhejiang (source).According to the agreement, SANY AWP will spend &gt;RMB10bn to build a production base for aerial work platform (AWP) and research centre in Wuxing District, Huzhou.Upon the completion of the construction, the annual capacity of AWP is expected to reach 150k units, covering various types of boom lift, scissors lift and large-size intelligent AWP models.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.

Huge AWP Expansion Plan by SANY Points to Deterioration of Competitive Landscape

<ul><li>Horizon’s reported net profit in 1H23 came in at RMB237mn, up 49% YoY.</li><li>Excluding the listing expense as well as the interest expense and FX change from the redemption liabilities on pre-IPO investment, core net profit moderately grew 10% YoY to RMB318mn which is in line with our expectation.</li><li>We like Horizon’s disciplined cost management, improved free cash flow through the execution of asset-light model and reduced gearing ratio. </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.

Horizon’s reported net profit in 1H23 came in at RMB237mn, up 49% YoY.Excluding the listing expense as well as the interest expense and FX change from the redemption liabilities on pre-IPO investment, core net profit moderately grew 10% YoY to RMB318mn which is in line with our expectation.We like Horizon’s disciplined cost management, improved free cash flow through the execution of asset-light model and reduced gearing ratio. 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.

Horizon CD (9930 HK) – 1H23 Core Profit +10% YoY

China

Horizon Construction Development Limited provides engineering and technical services. The Company provides represent tailor made one stop solutions for different businesses or operation scenarios. Horizon Construction Development also offers operating lease services, platform and other services, and other services.

Horizon Construction Development (9930 HK)

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Horizon Construction Development (9930 HK)

Horizon CD (9930 HK) - Back to Capex Growth Model

Horizon CD’s core net profit in 1H24 dropped 16% YoY to RMB268mn, largely in line with our expectation. Horizon CD proposed HK$0.04/ share of...

CMB International

Horizon CD (9930 HK) – Sell-Off Unjustified; Expect Pressure to End in 2-3 Days

We believe its transformation to the asset-light model will enhance balance sheet and earnings. The overseas expansion will become a new growth...

CMB International

Huge AWP Expansion Plan by SANY Points to Deterioration of Competitive Landscape

What is new? On 23 Nov, SANY AWP (三一高空机械) signed an agreement with the municipal government of Huzhou, Zhejiang (source).

CMB International

Horizon CD (9930 HK) – 1H23 Core Profit +10% YoY

We like Horizon’s disciplined cost management, improved free cash flow through the execution of asset-light model and reduced gearing ratio.

CMB International

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Horizon CD (9930 HK) - Back to Capex Growth Model

Horizon CD’s core net profit in 1H24 dropped 16% YoY to RMB268mn, largely in line with our expectation. Horizon CD proposed HK$0.04/ share of...

CMB International

Horizon CD (9930 HK) - 2023 Earnings in Line; 15% Share Price Pullback Looks Overdone

Our new TP of HK$3.7 is based on 9x 2024E P/E, which is 10% discount to the current P/E of Huatie (603300 CH, NR). Horizon CD is trading at only 3x...

CMB International

Horizon CD (9930 HK) – Sell-Off Unjustified; Expect Pressure to End in 2-3 Days

We believe its transformation to the asset-light model will enhance balance sheet and earnings. The overseas expansion will become a new growth...

CMB International

Huge AWP Expansion Plan by SANY Points to Deterioration of Competitive Landscape

What is new? On 23 Nov, SANY AWP (三一高空机械) signed an agreement with the municipal government of Huzhou, Zhejiang (source).

CMB International

Horizon CD (9930 HK) – 1H23 Core Profit +10% YoY

We like Horizon’s disciplined cost management, improved free cash flow through the execution of asset-light model and reduced gearing ratio.

CMB International