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

• Market Cap: HK$83.56B
• Dividend Yield: 7.28%
• Average Volume (3M): 9.06M
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.94
• Revenue Growth: -3.92%
• EPS Growth: 2.33%
• Country: HK
• Employees: 26,036
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.15
• 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$9.07
• Price Target Upside: 7.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$10.00 ▲(18.20% 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

Healthy operational margins

Sustained gross and EBIT/EBITDA margins indicate durable cost control and pricing power in heavy machinery. These margins support reinvestment in R&D and product quality, enabling long-term competitiveness in high-end equipment markets and resilience through demand cycles.

Conservative balance sheet

A strong equity ratio and low leverage provide financial flexibility to fund capex cycles and weather downturns without heavy refinancing. Improved ROE shows efficient use of equity, supporting sustainable capital allocation and ability to pursue strategic investments or leasing programs.

Diversified, service-linked business model

Mix of product sales, spare parts, maintenance services and financing creates recurring revenue streams and higher customer lifetime value. After-sales and financing reduce sensitivity to new-equipment cycles and strengthen customer relationships, supporting steadier long-term cash generation.

Negative Factors

Top-line contraction

A persistent revenue decline erodes scale advantages and can raise per-unit fixed costs over time. If sustained, it pressures operating leverage, limits reinvestment capacity, and risks market share loss to competitors investing more aggressively in products or distribution.

Negative free cash flow and weak cash conversion

Negative FCF driven by higher capex and low OCF-to-net-income ratio signals strained cash conversion. Over months, persistent FCF deficits can restrict capital returns, constrain growth initiatives, and force reliance on external financing, increasing funding risk.

Cyclical end‑market exposure

Heavy dependence on construction and real-estate investment ties demand to macro and policy cycles. Structural downturns or policy shifts can reduce new equipment orders for an extended period, increasing revenue/margin volatility and challenging long-term planning.

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

Company Description

Zoomlion Heavy Industry Science and Technology Co., Ltd., together with its subsidiaries, engages in the research, development, manufacture, and sale of construction and agricultural machinery in the People's Republic of China and internationally. The company operates through three segments: Construction Machinery, Agricultural Machinery, and Financial Services. It offers concrete machineries, including truck-mounted concrete pumps, trailer-mounted concrete pumps, dry mortar products, concrete placing booms, concrete mixing plants, truck-mounted concrete mixers, truck-mounted line concrete pumps, and self-propelled boom concrete pumps; and cranes, such as truck cranes, all-terrain truck cranes, crawler cranes, and various types of tower cranes. The company also provides road construction and pile foundation machinery, earth working machinery, material handling machineries and systems, specialized vehicles, and vehicle axles; road building and maintenance machinery; hoisting machinery; and forklift trucks and other products for infrastructure and real estate construction. In addition, it offers various agricultural machineries comprising tractors, grain harvesters, and drying machines. Further, the company provides finance leasing, commercial factoring, and bond issuance services. Additionally, it leases and trades in equipment and machineries; researches and manufactures machine software, motor vehicle components, and hydraulic products; and exploits and manages tourism resources. The company was formerly known as Changsha Zoomlion Heavy Industry Science and Technology Development Co., Ltd. and changed its name to Zoomlion Heavy Industry Science and Technology Co., Ltd. in October 2011. Zoomlion Heavy Industry Science and Technology Co., Ltd. was founded in 1992 and is based in Changsha, the People's Republic of China.

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	-1.68B	-1.89B	812.52M	894.84M	-288.88M	6.32B
Operating Cash Flow	2.20B	2.14B	2.71B	2.42B	2.62B	7.42B
Investing Cash Flow	-5.33B	-2.92B	-278.40M	567.37M	-1.83B	785.47M
Financing Cash Flow	-191.68M	-679.32M	-2.64B	-2.49B	2.42B	-3.24B

Zoomlion Heavy Industry Science & Technology Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 8.46 is above the 20-day moving average (MA) of 8.34, above the 50-day MA of 7.78, and above the 200-day MA of 6.57, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 68.56 is Neutral, neither overbought nor oversold. The STOCH value of 86.48 is Negative, 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$13.70B	10.65	11.37%	4.26%	2.60%	49.21%
0038	76 Outperform	HK$15.93B	11.72	10.40%	4.49%	-9.90%	-20.25%
1157	74 Outperform	HK$83.56B	17.65	7.29%	7.28%	-3.92%	2.33%
2618	73 Outperform	HK$74.49B	10.30	12.40%	―	11.05%	81.01%
2057	72 Outperform	HK$135.12B	14.93	13.87%	3.05%	12.64%	2.90%
0631	64 Neutral	HK$38.89B	26.43	11.02%	3.41%	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 to Raise RMB6 Billion via 2031 Convertible Bond Issue in Hong Kong

Zoomlion has entered into a subscription agreement with a syndicate of managers to issue RMB6 billion of convertible bonds due 2031, to be placed with the managers or their designated subscribers following a completed bookbuilding exercise. The bonds, which will be listed in Hong Kong subject to regulatory approval, are convertible into approximately 673.2 million H shares at an initial conversion price of HK$10.02 per share, potentially expanding the company’s H share base by about 30% and its overall share capital by over 7%; the issue is conducted under an existing specific mandate and does not require further shareholder approval, though completion remains conditional and may not proceed, prompting a cautionary note to investors.

The most recent analyst rating on (HK:1157) stock is a Hold with a HK$8.50 price target. To see the full list of analyst forecasts on Zoomlion Heavy Industry Science & Technology Co stock, see the HK:1157 Stock Forecast page.

Zoomlion Approves Key Resolutions at Extraordinary General Meeting

Zoomlion Heavy Industry Science & Technology Co., Ltd. held its extraordinary general meeting and class meetings for holders of H shares and A shares on December 11, 2025. During these meetings, several resolutions were passed, including the approval of a profit distribution plan with an interim dividend of RMB0.20 per share and amendments to related party transaction rules, articles of association, and procedural rules for meetings. These decisions are expected to impact the company’s governance and financial strategies, potentially enhancing shareholder value and operational efficiency.

The most recent analyst rating on (HK:1157) stock is a Buy with a HK$8.50 price target. To see the full list of analyst forecasts on Zoomlion Heavy Industry Science & Technology Co stock, see the HK:1157 Stock Forecast page.

Zoomlion Elects New Employee Representative Director Amid Governance Changes

Zoomlion Heavy Industry Science & Technology Co., Ltd. announced the election of Mr. Liu Xiaoping as the employee representative director, effective immediately. This change follows the company’s decision to abolish its supervisory board and amend its articles of association. Mr. Liu, who has been with the company since 1995 and has held various significant roles, will serve as an executive director until the expiry of the seventh session of the Board. This move is part of the company’s strategic adjustments and may impact its governance structure and stakeholder relations.

The most recent analyst rating on (HK:1157) stock is a Buy with a HK$8.50 price target. To see the full list of analyst forecasts on Zoomlion Heavy Industry Science & Technology Co stock, see the HK:1157 Stock Forecast page.

Zoomlion Announces Board of Directors and Their Roles

Zoomlion Heavy Industry Science & Technology Co., Ltd. has announced the composition of its Board of Directors, highlighting the roles and functions of each member. This announcement underscores the company’s commitment to strategic governance and leadership, potentially impacting its operational efficiency and decision-making processes.

The most recent analyst rating on (HK:1157) stock is a Buy with a HK$8.50 price target. To see the full list of analyst forecasts on Zoomlion Heavy Industry Science & Technology Co stock, see the HK:1157 Stock Forecast page.

Zoomlion Announces Interim Dividend for 2025

Zoomlion Heavy Industry Science & Technology Co., Ltd. has announced an interim cash dividend of RMB 0.2 per share for the six months ending June 30, 2025, with a payment date set for January 9, 2026. The dividend will be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.0998. This announcement reflects the company’s ongoing commitment to returning value to its shareholders. The dividend is subject to withholding tax, with varying rates depending on the residency and tax agreements of the shareholders, highlighting the company’s compliance with international tax regulations.

The most recent analyst rating on (HK:1157) stock is a Buy with a HK$8.50 price target. To see the full list of analyst forecasts on Zoomlion Heavy Industry Science & Technology Co stock, see the HK:1157 Stock Forecast page.

Zoomlion Completes Strategic Acquisition of Finance Subsidiary

Zoomlion Heavy Industry Science & Technology Co., Ltd. has successfully completed the acquisition of an 81% stake in Zoomlion Finance and Leasing (Beijing) Co., Ltd., making it a wholly-owned subsidiary. This acquisition, approved by the local financial supervision and administration bureau in Beijing, is expected to consolidate the financial results of the subsidiary into Zoomlion’s financial statements, potentially enhancing its financial performance and market position.

The most recent analyst rating on (HK:1157) stock is a Buy with a HK$8.50 price target. To see the full list of analyst forecasts on Zoomlion Heavy Industry Science & Technology Co stock, see the HK:1157 Stock Forecast page.

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.

The most recent analyst rating on (HK:1157) stock is a Buy with a HK$8.50 price target. To see the full list of analyst forecasts on Zoomlion Heavy Industry Science & Technology Co stock, see the HK:1157 Stock Forecast page.

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.

The most recent analyst rating on (HK:1157) stock is a Buy with a HK$8.50 price target. To see the full list of analyst forecasts on Zoomlion Heavy Industry Science & Technology Co stock, see the HK:1157 Stock Forecast page.

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.

The most recent analyst rating on (HK:1157) stock is a Buy with a HK$8.50 price target. To see the full list of analyst forecasts on Zoomlion Heavy Industry Science & Technology Co stock, see the HK:1157 Stock Forecast page.

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.

The most recent analyst rating on (HK:1157) stock is a Buy with a HK$8.50 price target. To see the full list of analyst forecasts on Zoomlion Heavy Industry Science & Technology Co stock, see the HK:1157 Stock Forecast page.

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.

The most recent analyst rating on (HK:1157) stock is a Buy with a HK$8.50 price target. To see the full list of analyst forecasts on Zoomlion Heavy Industry Science & Technology Co stock, see the HK:1157 Stock Forecast page.