A director at Lonking Holdings Ltd sold 8,559,000 shares at 1.641HKD and the significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years ...
LONKING HOLDINGS (HK), a company active in the Commercial Vehicles & Trucks industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 2 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date December 21, 2021, the closing price was HKD 2.14 ...
July excavator sales volume came in slightly below expectation, partially due to severe weather conditions in central and eastern China. However, valuations of the names under our coverage are bottoming out with improving market sentiment, driven by stabilising commodity prices and expectations of infrastructure stimulus in 2H21. We believe the upcycle has ended while easing of raw material prices would serve as the key catalyst in 2H21. Maintain MARKET WEIGHT. Top pick: Zoomlion-H.
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
We believe the peak replacement demand cycle of excavators has ended, while export and late-cycle products will still see robust growth in 2021-22. In the near term, margin squeeze will remain the key drag on share price performance in 2H21. However, we believe the share price correction in the past two months has priced in key negatives, and current valuations of leading players are undemanding as compared with global peers. Maintain MARKET WEIGHT. Top pick: Zoomlion-H.
Excavator and loader sales surged by 60% and 52% yoy respectively in Mar 21 despite the high base in 2020. We expect the upcycle to be sustained, as indicated by the strong recovery in construction activities across the world and fully-filled production schedule of key components’ producers. We are concerned about the margins with rising raw material costs, but better earnings visibility will continue to drive up the valuations. Top pick: Zoomlion-H. Maintain MARKET WEIGHT on the sector.
Lonking reported a strong 2020 net profit of Rmb1.96b, up 19.2% yoy. Stripping out the non-core business’ investment income, core net profit grew 9.7% yoy to Rmb1.4b. The company declared a dividend payment of HK$0.33/share, indicating a dividend yield of 12% and payout ratio of 61%. We remain positive on the China construction machinery sector but believe the company is fairly priced. Maintain HOLD with target price unchanged at HK$2.92.
Sales of excavators and loaders surged by 205% and 110% yoy respectively in February from a low base. We foresee a historical high for March sales judging from ample downstream demand and a record high production schedule for producers of key components. We have turned more positive on the sector as we expect the upcycle to last through 2021 with near-term positive catalysts ahead. Top pick: Zoomlion-H. Upgrade China’s machinery sector to MARKET WEIGHT from UNDERWEIGHT.
Excavators’ and loaders’ sales surged by 97% and 52% yoy respectively in January, with strong growth across different sized products. We foresee a strong 1Q21 thanks to the very low base effect and the full production schedule of a key components producer. We remain cautious on the sector with concerns over diminishing replacement demand for excavators, while we stay positive on late-cycle products. Top pick: Zoomlion-H. Maintain UNDERWEIGHT on the machinery sector.
2020 excavator sales surged by 39% yoy, marking the best year in history for the segment. We expect a solid 1Q21, but the 2021 outlook for excavators is challenging with concerns of a funding crunch in both the infrastructure and property sectors. Meanwhile, the next replacement cycle round might kick in only from 2022 based on the latest policy. We believe the recent share price rally has largely priced in most of the positives for Sany Heavy Industry. Top picks: Zoomlion-H. Maintain UNDERWEIGH...
Lonking reported stronger-than-expected 1H20 results with net profit up 6.2% yoy, mainly fuelled by fair value gains of its equity investments. Core business revenue declined by 4% yoy while margins contracted moderately. We expect the company to see a rebound in 2H20 while mid-long term growth remains a concern as it will likely miss-out the late-cycle products up-cycle, given its product mix and relatively conservative strategy. Maintain BUY and target price of HK$2.92.
GREATER CHINA Results Beijing Capital International Airport (694 HK/SELL/HK$5.30/Target: HK$4.50): 1H20: Cash burn highlights substantial operating risk. China Mengniu Dairy (2319 HK/BUY/HK$35.50/Target: HK$40.00): 1H20: Back to pre-COVID-19 growth trajectory. Contemporary Amperex Technology (300750 CH/BUY/Rmb204.95/Target: Rmb250.00): 2Q20: Net profit grows 13% yoy and 61% qoq, beating our estimate. Upgrade to BUY and raise target price to Rmb250.00. Lonking Holdings (3339 HK/BUY/HK$2.61/Target...
KEY HIGHLIGHTS Results Beijing Capital International Airport (694 HK/SELL/HK$5.30/Target: HK$4.50) 1H20: Cash burn highlights substantial operating risk. China Mengniu Dairy (2319 HK/BUY/HK$35.50/Target: HK$40.00) 1H20: Back to pre-COVID-19 growth trajectory. Contemporary Amperex Technology (300750 CH/BUY/Rmb204.95/Target: Rmb250.00) 2Q20: Net profit grows 13% yoy and 61% qoq, beating our estimate. Upgrade to BUY and raise target price to Rmb250.00. Lonking Holdings (3339 HK/BUY/HK$2.61/Tar...
Total excavator sales in April surged 59.9% yoy, boosted by heightened nationwide construction demand despite the industry-wide price hikes of 5-10%. Looking ahead, we believe the strong momentum would sustain, as evidenced by record-high machinery utilisation rates and ample order backlogs. Concerns over key components supply would ease as well. Top picks: Sany Heavy and Zoomlion-H. Maintain OVERWEIGHT on the machinery sector.
emain Overweight EM vs. EAFE The MSCI EM index (local currency) has continued to outperform relative to the MSCI EAFE index while the US dollar (DXY) forms a tight consolidation pattern. As a result we continue to favor EM over EAFE; and if EM is going to continue to outperform we would expect to see a breakdown below 98.50 support on the DXY. Like many global indexes, the MSCI EM index remains below resistance from a price perspective. Short-term levels we are watching include resistance at...
We believe the much stronger and faster-than-expected recovery of the domestic construction machinery sector would ease market concerns and trigger re-ratings for the companies in the universe. Short/mid-term outlooks are now more promising thanks to the tailwinds of favourable policies in China. We stay positive on the sector and suggest keeping an eye on cash flows and overseas risk. Top picks remain as Sany Heavy and Zoomlion-H. Maintain OVERWEIGHT on the machinery sector.
Lonking reported a 2019 net profit of Rmb1.6b, up 43.7% yoy. Stripping off the noncore business’ investment income, core net profit remained flat yoy at Rmb1.33b. The company declared a dividend payment of HK$0.25 per share, indicating a dividend yield of 11.6% and pay-out ratio of 59%. We believe Lonking is an attractive dividend yield play with a healthy balance sheet and good track record in terms of dividend pay-outs. Maintain BUY but cut target price to HK$2.88 (from HK$2.90).
Key positives from the jump-start of the LGSB issuance in 2020 include accelerated issuance, much larger infrastructure proportion and more funds being used as capital. We re-iterate our view that infrastructure stimulus might be the most direct and effective way to buffer the economic slowdown after the COVID-19 outbreak. The southern and eastern regions will perform better with stronger investment plans and quicker work resumption. Maintain OVERWEIGHT on the cement and construction machinery s...
Key positives from the jump-start of the LGSB issuance in 2020 include accelerated issuance, much larger infrastructure proportion and more funds being used as capital. We re-iterate our view that infrastructure stimulus might be the most direct and effective way to buffer the economic slowdown after the COVID-19 outbreak. South and East China will perform better with stronger investment plans and quicker work resumption. We prefer the China cement and construction machinery sectors.
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 sec...
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