CMBI: Cuts ZOOMLION (01157) Target Price to HK$8.2, Maintains "Buy" Rating

CMBI issued a research report stating that it has lowered the H-share target price of ZOOMLION (01157) from HK$9.1 to HK$8.2, maintaining a "Buy" rating. The company's net profit in the third quarter fell 26% year-on-year, mainly due to weak overseas business growth caused by the wars in the Middle East and Ukraine, as well as sluggish operating revenue growth. The bank noted that due to declining sales volume and higher cost assumptions, it has cut ZOOMLION's earnings forecasts for 2026 to 2028 by 3% to 9%. On valuation, the A-share maintains an 18.6x 2026 forecast P/E ratio, while the H-share maintains a 30% discount. The target P/E ratio remains unchanged, mainly because the bank expects the potential end of the wars in the Middle East and Ukraine to help the company resume growth.