Lonking Holdings Ltd.
- SectorIndustrial Engineering
Despite the record-high excavator sales in 2019, we are still positive on the overall industry outlook for 2020 on the back of several positive factors, including tightening of emission standards and overseas expansion, etc. We expect leaders to maintain decent earnings growth and margins in a more concentrated market. We continue to favour companies with exposure to late-cycle products and overseas markets. Our top picks remain Zoomlion-H and Sany Heavy. Maintain OVERWEIGHT on the machinery sector.
LONKING HOLDINGS LTD. (HK), a company active in the Commercial Vehicles & Trucks industry, sees its general evaluation downgraded to Neutral on account of a double requalification. The independent financial analyst theScreener just removed a fundamental star(s) for a 3 over 4-star rating. As such, market behaviour has also deteriorated and is evaluated as risky. theScreener believes that the loss of a star(s) and the increased risk justifies the general evaluation downgrade, which passes to Neutral. As of the analysis date November 29, 2019, the closing price was HKD 2.23 and its expected valu...
Feasibility Study Results in December to be a Catalyst for this Junior
UOB Kay Hian published on 26th September a report on China’s Infrastructure Sector that focuses on the influence of local government finance on the cement and machinery sectors. This thematic report addresses five key questions about the outlook for infrastructure fixed asset investment (FAI). The 16-page report (including the 2-page disclaimer) contains actionable investment recommendations for 6 HK-listed companies and 2 Shanghai-listed companies. For more information about the UOBKayHian dealing services in the Asia-Pacific region and the research on Asian companies (including bespoke packa...
We address five key questions about infrastructure FAI. Our base-case scenario indicates that infrastructure FAI growth will likely rebound to 5.0% and 7.4% in 2019-20 respectively. In our view, local government special bonds are a key incremental driver that will offset other funding constraints in the next few years, and Eastern and Southern China shall benefit the most from this situation. We expect further stimulus to support China’s cement and machinery sectors.