Report
John Hu
EUR 147.86 For Business Accounts Only

Termination of Terex Acquisition Good for Zoomlion's Long-Term Prospects

We think the termination of the proposed acquisition of U.S.-based Terex will allow Zoomlion to redirect resources and efforts toward boosting its interest in the relatively resilient agricultural and environmental machinery segment. We maintain our fair value estimate of HKD 3 per share and currently view the shares as fairly valued. Our no-moat rating with stable trend is unchanged. The termination of the deal, which would have been priced at USD 3.4 billion in cash, follows disagreement over ...
Underlying
Zoomlion Heavy Industry Science & Technology Co. Ltd. Class A

Zoomlion Heavy Industry Science And Technology Co., Ltd. is principally engaged in the research, development, manufacture and sales of engineering equipment, environmental sanitation equipment and agricultural equipment. The Company operates through four segments. The Engineering Equipment segment includes concrete equipment, lifting equipment, earthmoving equipment, foundation construction equipment, road construction equipment and forklifts, which mainly serve the construction of infrastructure and real estate. The Environmental Industry segment is engaged in the production of sanitation equipment, as well as environmental management investment and operating business. The Agricultural Equipment segment consists of farming machinery, harvesting machinery, drying machinery and agricultural machinery, among others. The Financial segment provides financial leasing and other financial services.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
John Hu

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