03339 Overview

Optimistic Outlook for Chinese Construction Machinery: UBS has a more positive forecast for the Chinese construction machinery industry, predicting the current upward cycle will last until 2029, contrary to market expectations of a peak by 2028-29.

Mining Sector Growth Potential: The report highlights that the growth potential of mining-related businesses in the industry is not yet reflected in stock performance, with Chinese manufacturers expected to capture over 20% of the global market share in mining trucks and excavators by 2030.

Stock Ratings and Forecasts: UBS has assigned a Neutral rating to ZOOMLION and LONKING, while raising their EPS growth forecasts for 2025-26 to 49%/27% and 21%/17%, respectively, and increasing target prices for both companies.

Top Pick Recommendation: XUGONG CONS has been named the industry top pick with a Buy rating due to its strong growth, higher mining-related business proportion, and attractive valuation.

Company Performance: LONKING (03339.HK) reported a 4.4% year-on-year increase in turnover, reaching RMB5.596 billion for the interim results ending June 2025.

Profit Growth: The net profit rose significantly by 37.8% year-on-year to RMB632 million, with earnings per share (EPS) recorded at RMB0.15.

Dividend Announcement: No dividend was declared by the company during this reporting period.

Market Activity: Short selling activity amounted to $3.44 million, with a short selling ratio of 10.881%.