Goldman Sachs: Maintains "Neutral" rating on LONKING (03339) with a target price of 1.6 Hong Kong dollars.

Goldman Sachs released a research report stating that based on the latest sales trends of LONKING (03339)'s main products, it has made a slight adjustment of 0-2% to the earnings per share for 2024-26, and maintained the stock's target price at 1.6 Hong Kong dollars with a "neutral" rating. The report points out that a cautious attitude is held towards the demand cycle for construction machinery in Mainland China. Within the coverage of construction machinery in Mainland China by the bank, it believes that LONKING is in the most unfavorable position. This is due to the consolidation of the wheeled loader market in Mainland China, indicating minimal growth potential for market share, structural losses in market share for excavators, limited export potential, and weakness in the domestic market for earthmoving machinery. The bank believes that all negative factors seem to have already been factored in, and demand for wheeled loaders in Mainland China seems to have normalized to the global average level outside of China by 2023 compared to demand for excavators.