HK Stock Market Move | ZOOMLION (01157) fell more than 3% with the company's revenue for the year significantly lower than expected. UBS pointed out that its domestic business still faces pressure.

ZOOMLION (01157) fell over 3%, dropping to 2.34% as of press time, hitting 5.43 Hong Kong dollars with a turnover of 34.2243 million Hong Kong dollars. UBS released a research report stating that it lowered ZOOMLION's earnings per share forecast for 2024 to 2026 by 11% to 21% to reflect domestic revenue significantly lower than expected this year, despite gross margins slightly higher than the bank's expectations. The bank believes that the domestic business still faces pressure, but the downside risks are limited. The bank continued to point out that China's "moderately loose" monetary policy could accelerate infrastructure investment and improve cash flow for downstream customers, coupled with ZOOMLION's overseas growth being able to maintain a higher growth rate than its peers, but the growth rate may further slow down. ZOOMLION's H-shares have risen 43% since the beginning of the year, mainly reflecting potential positive factors of policy relaxation, attractive dividend yield, and stock buybacks. The current valuation is reasonable.