HK Stock Market Move | ZOOMLION (01157) rose more than 3%, third quarter performance meets expectations, institutions optimistic about the company's sustained overseas business development.

ZOOMLION (01157) rose more than 3%, reaching a 3.65% increase, to 5.68 Hong Kong dollars, with a turnover of 56.1379 million Hong Kong dollars as of the time of drafting. According to a research report released by Citic Securities, ZOOMLION's revenue for the first three quarters of this year was 34.386 billion yuan, a decrease of 3% year-on-year, with a net profit attributable to shareholders of 3.139 billion yuan, an increase of 10% year-on-year. In the third quarter, revenue was 9.85 billion yuan, down 14% year-on-year, with a net profit attributable to shareholders of 851 million yuan, up 4% year-on-year. The performance is in line with expectations. The comprehensive gross profit margin for the first to third quarters/third quarter of 2024 increased by 0.6/1.1 percentage points to 28.4%/28.5% year-on-year. In the past few years, the company's profitability has improved significantly due to the continuous increase in overseas income, optimization of product structure with an increase in the proportion of high-end products, and a decrease in raw material costs. In addition, the proportion of the company's products in cranes and concrete products is relatively higher compared to comparable companies, so the company's domestic revenue is more affected. Demand for excavator exports in the second half of the year turned positive, with an increase in crane export growth in the second half of the year. Over the past 2 years, the company has focused on the overseas market, maintaining a high triple-digit export growth rate, with international revenue for the first three quarters of 2024 reaching 17.64 billion yuan, a year-on-year increase of 35.42%. Citic Securities is optimistic about the company's continued development of its overseas business.