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

Zoomlion Heavy Industry H / Equity Bottom-Up

<ul><li>Zoomlion’s net profit in 1Q23 dropped 11% YoY to RMB810mn, below our expectation but due largely to fx loss.</li><li>On the positive side, Zoomlion delivered revenue growth of 4% in 1Q23, the first YoY growth since 2Q21, driven by 123% YoY increase in overseas revenue.</li><li>Besides, gross margin expanded 6.3ppt YoY and 2.2ppt QoQ to 26.3%. </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.

Zoomlion’s net profit in 1Q23 dropped 11% YoY to RMB810mn, below our expectation but due largely to fx loss.On the positive side, Zoomlion delivered revenue growth of 4% in 1Q23, the first YoY growth since 2Q21, driven by 123% YoY increase in overseas revenue.Besides, gross margin expanded 6.3ppt YoY and 2.2ppt QoQ to 26.3%. 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.

Zoomlion (1157 HK) – 1Q23 earnings slightly below expectation but recovery trend largely on track

Zoomlion Heavy Industry S A / Equity Bottom-Up

Zoomlion (000157 CH) – 1Q23 earnings slightly below expectation but recovery trend largely on track

<ul><li>Zoomlion’s net profit in 2022 came in at RMB2.35bn (-63% YoY), in the middle of the range of RMB2.25-4.45bn pre-announced in Jan.</li><li>What surprised us is the final dividend of RMB0.32, which represents a 115% payout ratio and ~9% yield based on the current share price.</li><li>The generous dividend, together with the possibility to start buying back H-share, suggest that management is confident of the cash generating capability which will likely translate into positive share price performance.</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.

Zoomlion’s net profit in 2022 came in at RMB2.35bn (-63% YoY), in the middle of the range of RMB2.25-4.45bn pre-announced in Jan.What surprised us is the final dividend of RMB0.32, which represents a 115% payout ratio and ~9% yield based on the current share price.The generous dividend, together with the possibility to start buying back H-share, suggest that management is confident of the cash generating capability which will likely translate into positive share price performance.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.

Zoomlion (1157 HK) – Surprise on dividend; Recovery in sight

<ul><li>Upgrade to BUY from Hold. Zoomlion’s net profit in 2022 came in at RMB2.35bn (-63% YoY), in the middle of the range of RMB2.25-4.45bn preannounced in Jan.</li><li>What surprised us is the final dividend of RMB0.32, which represents a 115% payout ratio.</li><li>The generous dividend, together with the potential resumption of buy-back (A-share), suggest that management is confident of the cash generating capability which will likely translate into positive share price performance.</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.

Upgrade to BUY from Hold. Zoomlion’s net profit in 2022 came in at RMB2.35bn (-63% YoY), in the middle of the range of RMB2.25-4.45bn preannounced in Jan.What surprised us is the final dividend of RMB0.32, which represents a 115% payout ratio.The generous dividend, together with the potential resumption of buy-back (A-share), suggest that management is confident of the cash generating capability which will likely translate into positive share price performance.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.

Zoomlion (000157 CH) – Surprise on Dividend

Thematic (Sector/Industry)

<ul><li>Following a rally since early Feb, we believe the market has already priced in the upcoming recovery of machinery demand.</li><li>We see little upside potential in the near term, as (1) the recovery could be more seasonal (MoM) than structural (YoY), with sales of excavator (proxy for the sector) likely falling short of expectation in Mar; (2) We expect the strong credit growth will only translate into a moderate recovery of excavator demand this year (+10% YoY in our industry assumption).</li><li>Therefore, we are selective in our universe, and prefer only AWP (the only type of machinery that stands out by achieving 15% YoY growth in Jan). </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.

Following a rally since early Feb, we believe the market has already priced in the upcoming recovery of machinery demand.We see little upside potential in the near term, as (1) the recovery could be more seasonal (MoM) than structural (YoY), with sales of excavator (proxy for the sector) likely falling short of expectation in Mar; (2) We expect the strong credit growth will only translate into a moderate recovery of excavator demand this year (+10% YoY in our industry assumption).Therefore, we are selective in our universe, and prefer only AWP (the only type of machinery that stands out by achieving 15% YoY growth in Jan). 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 – Near-Term Recovery More Seasonal than Structural

China

Zoomlion Heavy Industry Science and Technology Co., Ltd.manufactures and markets construction machinery.  The Company's products include concrete machinery, cranes, road machinery, drilling equipment, and other heavy construction equipment.  Zoomlion also produces environmental machinery and satellite navigation products.

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Zoomlion Heavy Industry S A (000157 CH)

Zoomlion (1157 HK) – 1Q23 earnings slightly below expectation but recovery trend largely on track

On the positive side, Zoomlion delivered revenue growth of 4% in 1Q23, the first YoY growth since 2Q21, driven by 123% YoY increase in overseas...

CMB International

Zoomlion (000157 CH) – 1Q23 earnings slightly below expectation but recovery trend largely on track

On the positive side, Zoomlion delivered revenue growth of 4% in 1Q23, the first YoY growth since 2Q21, driven by 123% YoY increase in overseas...

CMB International

Zoomlion (1157 HK) – Surprise on dividend; Recovery in sight

Zoomlion’s net profit in 2022 came in at RMB2.35bn (-63% YoY), in the middle of the range of RMB2.25-4.45bn pre-announced in Jan.

CMB International

Zoomlion (000157 CH) – Surprise on Dividend

Upgrade to BUY from Hold. Zoomlion’s net profit in 2022 came in at RMB2.35bn (-63% YoY), in the middle of the range of RMB2.25-4.45bn preannounced...

CMB International

China Construction Machinery – Near-Term Recovery More Seasonal than Structural

Following a rally since early Feb, we believe the market has already priced in the upcoming recovery of machinery demand.

CMB International

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