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

Jiangsu Hengli Highpressure Oil Cylinder / Equity Bottom-Up

<ul><li>Hengli’s net profit in 3Q25 surged 31% YoY to RMB658mn, which implies an acceleration of earnings growth (+3%/+18% YoY in 1Q25/2Q25).</li><li>The encouraging results were driven by continuous recovery of cylinder demand, which further enhances our above-consensus earnings forecast.</li><li>While we have left our earnings forecast unchanged, we revise up our TP to RMB105 (from RMB92) after rolling over our valuation base to 2026E (based on an unchanged P/E multiple of 41x, +1SD above the historical average). </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.

Hengli’s net profit in 3Q25 surged 31% YoY to RMB658mn, which implies an acceleration of earnings growth (+3%/+18% YoY in 1Q25/2Q25).The encouraging results were driven by continuous recovery of cylinder demand, which further enhances our above-consensus earnings forecast.While we have left our earnings forecast unchanged, we revise up our TP to RMB105 (from RMB92) after rolling over our valuation base to 2026E (based on an unchanged P/E multiple of 41x, +1SD above the historical average). 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.

Jiangsu Hengli (601100 CH) - 3Q25 Earnings Growth Accelerated to 31% YoY

<ul><li>Hengli’s net profit in 1H25 grew 11% YoY to RMB1.43bn, which implies an acceleration of 2Q25 earnings growth (+18% YoY to RMB813mn).</li><li>It is encouraging that the gross margin in 2Q expanded to 44% despite a high base last year.</li><li>We have left our earnings forecast unchanged as our forecast has been ahead of consensus. </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.

Hengli’s net profit in 1H25 grew 11% YoY to RMB1.43bn, which implies an acceleration of 2Q25 earnings growth (+18% YoY to RMB813mn).It is encouraging that the gross margin in 2Q expanded to 44% despite a high base last year.We have left our earnings forecast unchanged as our forecast has been ahead of consensus. 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.

Jiangsu Hengli (601100 CH) - 2Q25 Earnings Growth Accelerated

<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>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.

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

Thematic (Sector/Industry)

<ul><li>China Construction Machinery Association (CCMA) has just released the full set of construction machinery sales data for Oct.</li><li>Domestic sales of truck cranes and crawler cranes remained strong (+42%/+54% YoY in Oct), which we believe were driven by energy projects and wind power installation.</li><li>Exports in Oct were strong across different types of machinery (except AWPs &amp; truck cranes). </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) has just released the full set of construction machinery sales data for Oct.Domestic sales of truck cranes and crawler cranes remained strong (+42%/+54% YoY in Oct), which we believe were driven by energy projects and wind power installation.Exports in Oct were strong across different types of machinery (except AWPs &amp; truck cranes). 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 - Domestic crane demand continues to recover

<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

China

Jiangsu Hengli Hydraulic Co Ltd develops, manufactures and sells high pressure tank, hydraulic components and hydraulic systems. The Company's main products include fuel tanks and non-standard cylinders for heavy equipment.

Jiangsu Hengli Highpressure Oil Cylinder (601100 CH)

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