Bank of America Securities: Raises ZOOMLION (01157) target price to HK$10.1, reiterates "buy" rating.

Bank of America Securities released a research report stating that it reiterates a positive outlook on the mainland construction machinery industry, based on support from central government policies; domestic market replacement demand; and increasing market share for domestic manufacturers in overseas markets as well as export growth. Leading construction machinery original equipment manufacturers will be the main beneficiaries. The bank has raised its target price for ZOOMLION (01157.HK) from 8.5 Hong Kong dollars to 10.1 Hong Kong dollars, reiterating a "buy" rating, due to its strong export sales and attractive valuation. It has also raised the target price for ZOOMLION (000157.SZ) A-shares from 10.9 Chinese yuan to 11.1 Chinese yuan. Based on the increase in revenue forecasts, Bank of America Securities has raised its profit forecasts for ZOOMLION for the 2026 and 2027 fiscal years by 3% and 2%, respectively. It has also raised the target price-to-earnings ratio from 12 times to 14 times, which is 1.5 standard deviations above the five-year historical average, to reflect the company's robust progress in the fields of small excavators, mining machinery, and robotics.