Lonking Sets Higher Caps on Connected Parts Purchases Amid Expected Machinery Market Recovery

The latest update is out from Lonking Holdings ( (HK:3339) ).

Lonking Holdings has provided further details on the renewed master purchase agreement governing its continuing connected transactions with Longyan City Jinlong Machinery, setting annual caps for purchases of machinery parts at RMB50 million, RMB60 million and RMB70 million for 2026, 2027 and 2028, respectively. These caps are based on historical transaction values, an assumption of largely stable unit prices, and management’s relatively optimistic view of a cyclical recovery in the construction machinery market over the next three years, particularly as domestic demand in China shows signs of bottoming out and stabilizing. The board, including independent non-executive directors, believes the caps are fair and reasonable, aligned with expected industry rebound, and structured so that the group does not pay a premium to the connected supplier, signaling confidence in future business growth and a disciplined approach to related-party dealings.

The most recent analyst rating on (HK:3339) stock is a Buy with a HK$3.50 price target. To see the full list of analyst forecasts on Lonking Holdings stock, see the HK:3339 Stock Forecast page.

More about Lonking Holdings

Lonking Holdings Limited is a Hong Kong-listed construction machinery manufacturer incorporated in the Cayman Islands, focusing on the production and sale of machinery and related parts for the construction sector. The group operates within the broader construction machinery industry, supplying components and equipment to meet domestic and overseas market demand, with its performance tied closely to cyclical trends in infrastructure and construction activity.

Average Trading Volume: 5,422,715

Technical Sentiment Signal: Buy

Current Market Cap: HK$13.35B

Learn more about 3339 stock on TipRanks’ Stock Analysis page.