Citi: Zoomlion (01157) benefits from mainland agricultural technology national policy, reiterates "buy" rating.
Based on the 90-day observation of the catalyst for the upward trend of Zoomlion Heavy Industry, it is believed that the "Number One Document" can be considered as an additional catalyst, reaffirming the "buy" rating with a target price of 10.2 Hong Kong dollars.
Citigroup released a research report stating that the Chinese State Council has issued the "Number One Document" aimed at promoting the modernization of the agricultural industry and promoting comprehensive revitalization of rural areas. The document also points out that innovative technologies such as AI, drones, and robots should be used to enhance the productivity of China's agricultural industry. The bank believes that among Chinese machinery manufacturers, this document is particularly positive for ZOOMLION (01157). It is estimated that about 8% of the company's revenue in 2026 will come from the agricultural machinery business. Based on the bank's 90-day observation of catalysts for ZOOMLION's upward trend, it believes that the "Number One Document" can be viewed as an additional catalyst, reiterates a "buy" rating, and sets a target price of 10.2 Hong Kong dollars.
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