Zoomlion Heavy Industry Science & Technology Co (1157) AI Stock Analysis

• Market Cap: HK$77.64B
• Dividend Yield: 7.29%
• Average Volume (3M): 9.06M
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.91
• Revenue Growth: -3.92%
• EPS Growth: 2.33%
• Country: HK
• Employees: 26,036
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.14
• Shares Outstanding: 1,552,507,600
• 10 Day Avg. Volume: 6,494,302
• 30 Day Avg. Volume: 9,061,118
• PEG Ratio: -5.48
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 1.01
• P/FCF Ratio: -24.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$8.25
• Price Target Upside: 9.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$8.50 ▲(13.03% Upside)

Zoomlion Heavy Industry's overall stock score is driven by strong technical indicators and a solid valuation, despite moderate financial performance. The company's stable balance sheet and attractive dividend yield support its investment appeal, though liquidity challenges warrant attention.

Positive Factors

Operational Margins

Strong operational margins suggest effective cost control and operational efficiency, providing a buffer against revenue fluctuations and supporting profitability.

Balance Sheet Stability

A strong equity position and low leverage enhance financial stability, allowing Zoomlion to withstand economic volatility and invest in growth opportunities.

Net Profit Margin Improvement

Improved net profit margins indicate enhanced operational efficiency and profitability, which can lead to better returns for shareholders over time.

Negative Factors

Revenue Decline

A declining revenue trend may signal weakening demand or competitive pressures, potentially impacting long-term growth prospects and market position.

Negative Free Cash Flow

Negative free cash flow can strain liquidity and limit the ability to fund new projects or return capital to shareholders, posing a risk to financial flexibility.

Liquidity Constraints

Low operating cash flow relative to net income indicates potential liquidity issues, which could hinder the company's ability to meet short-term obligations and invest in growth.

Zoomlion Heavy Industry Science & Technology Co Business Overview & Revenue Model

Company Description

Zoomlion Heavy Industry Science & Technology Co., Ltd. is a leading Chinese manufacturer specializing in the production of construction machinery and equipment. Established in 1992, the company operates across multiple sectors, including construction, environmental protection, and agricultural machinery. Its core products encompass a wide range of heavy machinery, such as cranes, concrete machinery, earthmoving equipment, and agricultural equipment, positioning Zoomlion as a key player in the global construction and industrial equipment market.

How the Company Makes Money

Zoomlion generates revenue primarily through the sale of its heavy machinery and equipment, which is sold both domestically in China and internationally. The company has established a diverse revenue model that includes direct sales, leasing options, and after-sales services such as maintenance and parts supply, contributing to a steady income stream. Significant partnerships with construction firms, government projects, and infrastructure development initiatives further bolster its sales. Additionally, Zoomlion benefits from government support and incentives aimed at promoting the domestic manufacturing sector, enhancing its competitive edge in pricing and innovation.

Zoomlion Heavy Industry Science & Technology Co Financial Statement Overview

Summary

Zoomlion Heavy Industry shows moderate financial health. The income statement indicates profitability despite a revenue decline, supported by strong operational margins. The balance sheet reflects stability with low leverage, but cash flow challenges are evident with negative free cash flow, highlighting liquidity concerns.

Income Statement

Zoomlion Heavy Industry's income statement reveals a stable but declining revenue trend with a TTM revenue of 45.7B, down from 47.0B in 2023. The gross profit margin stands at 27.8% TTM, indicating good cost management. However, the net profit margin improved to 8.8% TTM, reflecting enhanced efficiency, even as total revenue decreased. EBIT and EBITDA margins remain healthy at 9.0% and 12.9% respectively, suggesting operational stability despite revenue fluctuations.

Balance Sheet

The balance sheet shows a strong equity position with an equity ratio of 45.0% TTM, implying financial stability and low leverage. The debt-to-equity ratio is 0.31, indicating moderate use of debt. Return on equity improved to 6.9% TTM, highlighting efficient equity usage. The company maintains a robust asset base, supporting its competitive stance in the industry.

Cash Flow

Cash flow analysis indicates challenges with free cash flow, which turned negative TTM at -624M due to higher capital expenditures. The operating cash flow to net income ratio is low at 0.25, suggesting potential liquidity constraints. Despite these issues, the company managed positive operating cash flows, reflecting its capability to generate cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.80B	45.48B	47.07B	41.63B	67.13B	65.11B
Gross Profit	12.86B	12.81B	12.92B	9.09B	15.85B	18.62B
EBITDA	5.40B	6.30B	6.31B	4.16B	8.46B	10.35B
Net Income	4.00B	3.52B	3.51B	2.31B	6.27B	7.28B
Balance Sheet
Total Assets	129.23B	123.75B	130.86B	123.55B	122.02B	116.27B
Cash, Cash Equivalents and Short-Term Investments	14.49B	15.34B	17.64B	19.51B	21.57B	16.77B
Total Debt	21.35B	17.20B	20.91B	22.51B	19.42B	19.88B
Total Liabilities	69.86B	63.91B	71.70B	66.58B	63.72B	68.39B
Stockholders Equity	57.14B	57.14B	56.41B	54.74B	56.87B	46.74B
Cash Flow
Free Cash Flow	-850.87M	-1.89B	812.52M	894.84M	―	6.32B
Operating Cash Flow	2.20B	2.14B	2.71B	2.42B	2.62B	7.42B
Investing Cash Flow	-4.00B	-2.92B	-278.40M	567.37M	―	785.47M
Financing Cash Flow	1.25B	-679.32M	-2.64B	―	2.42B	―

Zoomlion Heavy Industry Science & Technology Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1157, the sentiment is Positive. The current price of 7.52 is above the 20-day moving average (MA) of 7.39, above the 50-day MA of 7.34, and above the 200-day MA of 6.23, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 52.59 is Neutral, neither overbought nor oversold. The STOCH value of 16.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1157.

Zoomlion Heavy Industry Science & Technology Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3339	78 Outperform	HK$12.80B	9.95	11.37%	4.35%	2.60%	49.21%
0038	76 Outperform	HK$14.88B	11.47	10.40%	4.46%	-9.90%	-20.25%
1157	74 Outperform	HK$77.64B	15.14	7.29%	7.29%	-3.92%	2.33%
2618	73 Outperform	HK$78.75B	10.89	12.40%	―	11.05%	81.01%
2057	72 Outperform	HK$131.24B	14.33	13.87%	3.03%	12.64%	2.90%
0631	69 Neutral	HK$26.98B	18.35	11.02%	3.47%	15.52%	-23.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Zoomlion Heavy Industry Science & Technology Co Corporate Events

Zoomlion Announces Convertible Bond Issuance to Boost Financial Flexibility

Zoomlion Heavy Industry Science & Technology Co., Ltd. has entered into a Placing Agency Agreement to issue convertible bonds, with the aim of facilitating at least six independent placees to subscribe for these bonds. This strategic move is expected to enhance the company’s financial flexibility and potentially strengthen its market position by attracting new investors, thereby impacting its operations and stakeholder interests positively.

Zoomlion Announces Interim Dividend and Tax Details for 2025

Zoomlion Heavy Industry Science & Technology Co., Ltd. announced an interim dividend of RMB 0.2 per share for the six months ending June 30, 2025, with the payment date set for January 9, 2026. The announcement includes details on withholding tax rates applicable to different categories of shareholders, indicating a strategic move to maintain shareholder value and comply with international tax agreements.

Zoomlion Announces EGM and Convertible Bond Issuance

Zoomlion Heavy Industry Science & Technology Co., Ltd. has announced an Extraordinary General Meeting (EGM) to be held on December 11, 2025. The meeting will address several key resolutions, including the approval of a profit distribution plan, amendments to the company’s articles of association, and procedural rules for meetings. Additionally, the company plans to issue convertible bonds worth up to RMB6 billion, which will be convertible into H shares, potentially impacting the company’s financial strategy and market positioning.

Zoomlion Plans RMB6 Billion Convertible Bonds Issuance

Zoomlion Heavy Industry Science & Technology Co., Ltd. has announced a class meeting for holders of H shares to discuss the proposed issuance of convertible bonds worth up to RMB6 billion. This move is aimed at strengthening the company’s financial position and providing flexibility in its capital structure, potentially impacting its market positioning and offering new opportunities for stakeholders.

Zoomlion Announces Dates for Key Shareholder Meetings

Zoomlion Heavy Industry Science & Technology Co., Ltd. has announced the schedule for its upcoming extraordinary general meeting (EGM) and H Shares Class Meeting, both set for December 11, 2025, in Changsha City, Hunan Province. The meetings aim to determine the entitlement of H share holders to attend and vote, with the share register being closed from December 8 to December 11, 2025. This announcement is significant for stakeholders as it outlines the procedural steps necessary for participation in these critical meetings, potentially impacting shareholder decisions and company governance.

Zoomlion Announces Proposed Issuance of RMB6 Billion Convertible Bonds

Zoomlion Heavy Industry Science & Technology Co., Ltd. has announced a proposed issuance of convertible bonds worth up to RMB6 billion, which will be convertible into overseas listed foreign shares. This move, subject to shareholder approval, aims to strengthen the company’s financial position and could potentially enhance its market presence by increasing its capital base.

Zoomlion Establishes Audit Committee to Boost Governance

Zoomlion Heavy Industry Science & Technology Co., Ltd. has established an audit committee within its board of directors to strengthen corporate governance. This committee is tasked with overseeing financial disclosures, internal and external audits, and ensuring effective internal controls. The move is aimed at enhancing the decision-making capabilities of the board and ensuring diligent supervision of senior management, thereby improving the company’s operational transparency and accountability.

Zoomlion Enhances Corporate Governance with New Committee

Zoomlion Heavy Industry Science & Technology Co., Ltd. has established a remuneration and assessment committee to refine its management system for directors and senior management. This initiative aims to improve corporate governance by formulating appraisal standards and remuneration policies, ensuring transparency and accountability in the company’s operations.

Zoomlion Enhances Corporate Governance with New Nomination Committee

Zoomlion Heavy Industry Science & Technology Co., Ltd. has established a nomination committee within its board of directors to enhance corporate governance and optimize board structure. This committee is tasked with proposing candidates for directors and senior management, ensuring a diverse and skilled board composition, and supporting succession planning. The initiative reflects the company’s commitment to aligning with regulatory standards and improving its strategic operations, potentially impacting its industry positioning and stakeholder relations.

Zoomlion Releases Unaudited Third Quarterly Report for 2025

Zoomlion Heavy Industry Science & Technology Co., Ltd. has released its unaudited Third Quarterly Report of 2025, prepared in accordance with PRC GAAP. The report, which covers the nine months ending on September 30, 2025, was reviewed by the company’s Board and Supervisory Board, ensuring its accuracy and completeness. This announcement, made under the rules of the Hong Kong Stock Exchange, highlights the company’s commitment to transparency and accountability in its financial reporting.

Zoomlion Proposes Amendments to Streamline Governance

Zoomlion Heavy Industry Science & Technology Co., Ltd. has announced proposed amendments to its Articles of Association in compliance with the new Company Law of the People’s Republic of China. The company plans to eliminate the supervisory board, transferring its functions to the audit committee, and will make related changes to the terms of reference for various board committees. These amendments are subject to shareholder approval and aim to streamline governance structures, potentially impacting the company’s operational efficiency and stakeholder engagement.

Zoomlion Announces Board Meeting to Review Q3 Results

Zoomlion Heavy Industry Science & Technology Co., Ltd. announced that its Board of Directors will hold a meeting on October 30, 2025, to review and approve the unaudited third quarterly results for the period ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and operational progress, potentially impacting its market positioning and stakeholder interests.

Zoomlion Unlocks 30% of A Shares in Stock Ownership Plan

Zoomlion Heavy Industry Science & Technology Co., Ltd. announced the expiry of the second lock-up period for its Stock Ownership Plan (Phase II), resulting in the unlocking of 30% of A Shares, equivalent to 127,187,029 shares. The company met the required performance targets, with its net profits for 2023 and 2024 showing significant growth, thus allowing the shares to be unlocked. The Management Committee plans to sell the unlocked shares on the market, distributing the proceeds to holders, which reflects positively on the company’s operational performance and strategic planning.