Bank of America Securities released a research report stating that it has raised the revenue forecast for Zoomlion (01157) for 2024 to 2026 by 1%, 2%, and 2%, and adjusted the net income forecast by 3%, 3%, and 7%. The target price has been raised from 5.4 Hong Kong dollars to 6.45 Hong Kong dollars, reiterating a "buy" rating. The company is steadily expanding into overseas markets, and it is expected that recent relaxed policies in the real estate market will help boost the sales of construction machinery related to real estate.
The bank expects that mainland construction machinery dealers will benefit from the recent loosening of domestic credit and the support of the real estate loosening policy, while improvements in end-user liquidity and the macroeconomic environment will also improve the operating capital situation of leading enterprises. Due to the low base effect, Bank of America expects that Sany Heavy Industry (600031.SH), Zoomlion, and Hengli's hydraulic business will benefit from the recovery in excavator sales in the second half of the year.
