The Zhitong Finance App learned that UBS released a research report stating that maintaining the “neutral” rating of Zoomlion Heavy Industries (01157), the compound annual growth rate of earnings per share is expected to be 33% from 2023 to 2025, which is less than 10% higher than the industry average. The target price was raised from HK$4.1 to HK$6.2.
The bank said it raised the company's earnings per share forecast for this year and next two years by 20% and 26% to reflect increased overseas sales and expanded gross margin. Despite the company's strong profit prospects, attractive dividend rates, and positive management guidance, considering that the company's stock price has increased by more than 40% so far this year (up more than 20% compared to peers), the increase is estimated to reflect most of the favorable factors.