A: Basic Information of the Company
Full Name: Zoomlion Heavy Industry Science and Technology Co., Ltd.
Stock Code: 000157
Stock Abbreviation: Zoomlion
Region: China
Industry: Construction Machinery
Date of Establishment: August 31, 1999
Company Website: http://www.zoomlion.com
Registered Address: No. 361, Yinpen South Road, Changsha, Hunan Province, China
Total Shares Outstanding: 8.678 billion shares (as of June 30, 2024)
Market Capitalization: 59.531 billion yuan (as of October 25, 2024)
Business Operations: Development, production, sales, and service of construction machinery, agricultural machinery, and new building materials
Company Profile: Zoomlion Heavy Industry Science and Technology Co., Ltd. is a leading enterprise in the global construction machinery industry. The company is committed to the research and development, manufacturing, sales, and service of high-tech equipment such as construction and agricultural machinery. Its products cover concrete machinery, crane machinery, earthmoving machinery, agricultural machinery, and more. The company has a significant market share both domestically and internationally and is recognized as one of the top brands in the global construction machinery sector. Zoomlion has incubated from a national research institute and is a standard-setter in the industry, with 8 national scientific research and innovation platforms. The company's R&D investment intensity exceeds 8%, and it has accumulated 16,120 patent applications, including 6,919 invention patents. The number of valid invention patents ranks first in the machinery and equipment industry. The company's crane technology innovation team has been honored as a national outstanding engineer team. Zoomlion's production and manufacturing bases are distributed worldwide, and its products are sold in the Middle East, South America, Africa, Southeast Asia, Russia, as well as in high-end markets such as Europe, the United States, and Australia.
B: Value Investment Analysis
Key Financial Indicators:
As of October 25, 2024, Zoomlion's price-to-earnings (PE TTM) ratio is 15.86, the price-to-book ratio is 1.07, the total market capitalization is 59.531 billion yuan, the total number of shares outstanding is 8.678 billion shares, and the circulating market value is 48.504 billion yuan.
Company Investment Value:
Zoomlion, as a leader in the global construction machinery industry, has a strong brand influence and market competitiveness. The company excels in technological innovation, product quality, and sales networks, and can promptly understand market demands to provide customers with high-quality products and services. Moreover, the company has made significant achievements in the transformation and upgrading of intelligent manufacturing and digitalization, enhancing production efficiency and market response speed. With the continuous advancement of global infrastructure construction and the company's expansion in the international market, Zoomlion's potential for future development is enormous.
Company Growth Potential:
Zoomlion maintains a strong momentum in technological innovation, with the international standard ISO 21573-2, which the company led in revising, officially published. The AI expert diagnostic system V2.0 based on voice interaction has also been officially launched. The company has yielded fruitful results in the transformation and upgrading of intelligent manufacturing, digitalization, and greenization, such as the full-line production of the tower crane intelligent factory, which has significantly improved production efficiency. In addition, the company's expansion in the international market has achieved notable results, with products sold in various countries and regions, providing broad space for the company's long-term development.
Industry Support Policies:
The Chinese government places great emphasis on the development of agriculture, and the agricultural industry is expected to usher in significant development opportunities. The 2024 Central No. 1 Document emphasizes ensuring national food security, strengthening agricultural technology support, vigorously implementing actions to fill the gaps in agricultural machinery equipment, and improving policies on agricultural machinery purchase and application subsidies. These policies will promote technological progress and industrial upgrading in the agricultural machinery industry, improve the efficiency and benefits of agricultural production, cultivate agricultural machinery industry clusters, and promote the high-quality development of agricultural machinery in the medium and long term.
International Policy Risks:
The turbulence of the international situation and adjustments in macroeconomic policies may have adverse effects on the company's operations, such as market demand decline, raw material price increases, and exchange rate fluctuations. In addition, the upward trend in the prices of bulk commodities such as steel and oil poses a risk of increased production costs for the company. The fluctuation range of exchange rates has increased, and there are risks of decreased returns on overseas investments and sales.
A.Top's Investment Review:
Zoomlion, as a leader in the construction machinery industry, demonstrates strong investment value and growth potential with its core technical advantages in 5G, chips, cloud computing, and other fields, as well as continuous innovation capacity and extensive global market layout. With the continuous advancement of global infrastructure construction and the rapid development of the agricultural machinery market, Zoomlion is expected to achieve sustained and healthy growth, bringing considerable returns to investors.