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

<ul><li>We revise down our 2024E-26E earnings forecast by 9-13% to reflect lower growth of mining trucks and oil &amp; gas equipment segments.</li><li>That said, we are encouraged by SANYI’s decision to slow the pace of solar manufacturing business expansion.</li><li>With potentially less capex and better profit contribution from solar farm disposal, we are now less concerned on the balance sheet pressure. </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.

We revise down our 2024E-26E earnings forecast by 9-13% to reflect lower growth of mining trucks and oil &amp; gas equipment segments.That said, we are encouraged by SANYI’s decision to slow the pace of solar manufacturing business expansion.With potentially less capex and better profit contribution from solar farm disposal, we are now less concerned on the balance sheet pressure. 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.

SANY International (631 HK) - Scale-Down of Solar Power Expansion Plan a Positive Move

<ul><li>SANYI is set to report 1Q24E financial data on 16 May (this Thu).</li><li>We forecast SANYI to deliver a ~15% YoY decrease in net profit from a high base, due to (1) miners’ disciplined capex as a result of the decline in domestic coal production in 1Q24; (2) keen competition in certain products such as hydraulic supports and wide-body trucks; and (3) a loss-making solar power segment.</li><li>Despite the near-term headwind, we expect a potential recovery in 2H24E on the back of improvement in solar business and low base effect for mining equipment segment.</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.

SANYI is set to report 1Q24E financial data on 16 May (this Thu).We forecast SANYI to deliver a ~15% YoY decrease in net profit from a high base, due to (1) miners’ disciplined capex as a result of the decline in domestic coal production in 1Q24; (2) keen competition in certain products such as hydraulic supports and wide-body trucks; and (3) a loss-making solar power segment.Despite the near-term headwind, we expect a potential recovery in 2H24E on the back of improvement in solar business and low base effect for mining equipment segment.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.

SANY International (631 HK) - Expect an Unexciting Set of Results in 1Q24E

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>
<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>'s positive profit alert for 33-50% YoY increase in 1H24 earnings suggests that market consensus of just 10% full-year growth is way too conservative.  </li>
<li>Industry sales momentum for excavators and wheel loaders has accelerated in the last three months. A low base in 2H24 will mean an even stronger recovery.</li>
<li>Government supportive measures for equipment renewal and faster special purpose bond issuance will fuel demand too. We estimate net cash equals 90% of the share price. </li>
</ul>



Lonking Holdings (3339 HK)'s positive profit alert for 33-50% YoY increase in 1H24 earnings suggests that market consensus of just 10% full-year growth is way too conservative.  
Industry sales momentum for excavators and wheel loaders has accelerated in the last three months. A low base in 2H24 will mean an even stronger recovery.
Government supportive measures for equipment renewal and faster special purpose bond issuance will fuel demand too. We estimate net cash equals 90% of the share price. 


Lonking (3339 HK): Setting the Stage for Better Profitability

<ul>
<li>
<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>'s demand should pick up in 2H24 supported by the government's "Action plan to promote large-scale equipment renewals and consumer goods trade-ins". </li>
<li>Industry volume sales have already witnessed a narrower YoY decline in Mar, with solid exports of wheel loaders and domestic sales of excavators.</li>
<li>After going ex- in late-May, its PER will drop to 7.0x and yield will rise to 6.6%. Net cash of HK$1.56/share is more than fully cover its share price.</li>
</ul>



Lonking Holdings (3339 HK)'s demand should pick up in 2H24 supported by the government's "Action plan to promote large-scale equipment renewals and consumer goods trade-ins". 
Industry volume sales have already witnessed a narrower YoY decline in Mar, with solid exports of wheel loaders and domestic sales of excavators.
After going ex- in late-May, its PER will drop to 7.0x and yield will rise to 6.6%. Net cash of HK$1.56/share is more than fully cover its share price.


<ul>
<li>After a poor FY22, 1H23 will stay challenging for <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>. However, we expect pick-up in business momentum going forward, and export is a major growth driver.</li>
<li>Gross margin rebounded HoH and YoY in 2H22, and Lonking maintained good operating cost control. Recovery of equity market suggests potential big positive swing in investment income. </li>
<li>Including investment portfolio, 92% of the current market capitalisation is net cash, providing solid downside buffer. Its 6.5x PER, 9.2% yield and 0.52x P/B are very attractive valuations.</li>
</ul>


After a poor FY22, 1H23 will stay challenging for Lonking Holdings (3339 HK). However, we expect pick-up in business momentum going forward, and export is a major growth driver.
Gross margin rebounded HoH and YoY in 2H22, and Lonking maintained good operating cost control. Recovery of equity market suggests potential big positive swing in investment income. 
Including investment portfolio, 92% of the current market capitalisation is net cash, providing solid downside buffer. Its 6.5x PER, 9.2% yield and 0.52x P/B are very attractive valuations.


Lonking (3339 HK): Back to Attractive Zone

China

Sany Heavy Equipment International Holdings Co Ltd. manufactures coal mining equipment, including roadheaders.

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Sany Heavy Equipment (631 HK)

SANY International (631 HK) - Scale-Down of Solar Power Expansion Plan a Positive Move

We revise down our 2024E-26E earnings forecast by 9-13% to reflect lower growth of mining trucks and oil & gas equipment segments.

CMB International

SANY International (631 HK) - Expect an Unexciting Set of Results in 1Q24E

SANYI is set to report 1Q24E financial data on 16 May (this Thu). We forecast SANYI to deliver a ~15% YoY decrease in net profit from a high base

CMB International

Lonking (3339 HK): Setting the Stage for Better Profitability

Lonking expects 1H24 earnings to grow by 33-50% YoY, signaling a much stronger full-year performance than market consensus. Industry sales...

Osbert Tang, CFA

Lonking (3339 HK): Policy Tailwind

Government policy support and improving industry demand should drive a potential uptick in sales for Lonking in 2H24. Attractive valuations and a...

Osbert Tang, CFA

Lonking (3339 HK): Back to Attractive Zone

We turned bullish on Lonking on 17 Apr, and since then, the stock has performed well. It has just issued a positive profit alert with 91-158% YoY...

Osbert Tang, CFA

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52-week Range

Market Cap (USDm)

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SANY International (631 HK) - Scale-Down of Solar Power Expansion Plan a Positive Move

We revise down our 2024E-26E earnings forecast by 9-13% to reflect lower growth of mining trucks and oil & gas equipment segments.

CMB International

SANY International (631 HK) - Expect an Unexciting Set of Results in 1Q24E

SANYI is set to report 1Q24E financial data on 16 May (this Thu). We forecast SANYI to deliver a ~15% YoY decrease in net profit from a high base

CMB International

Lonking (3339 HK): Setting the Stage for Better Profitability

​Lonking expects 1H24 earnings to grow by 33-50% YoY, signaling a much stronger full-year performance than market consensus. Industry sales...

Osbert Tang, CFA

Lonking (3339 HK): Policy Tailwind

Government policy support and improving industry demand should drive a potential uptick in sales for Lonking in 2H24. Attractive valuations and a...

Osbert Tang, CFA

Lonking (3339 HK): Back to Attractive Zone

We turned bullish on Lonking on 17 Apr, and since then, the stock has performed well. It has just issued a positive profit alert with 91-158% YoY...

Osbert Tang, CFA

Lonking expects 1H24 earnings to grow by 33-50% YoY, signaling a much stronger full-year performance than market consensus. Industry sales...