Citibank: Upgraded the rating of Zhonglian Heavy Industries (01157) to “buy” and raised the target price to HK$10.2

The Zhitong Finance App learned that Citibank released a research report stating that it raised the 2026 and 2027 profit forecasts for Zhonglian Heavy Industries (01157) by 6% and 9%, raised the target price by 59%, from HK$6.4 to HK$10.2, and raised the H-share rating from “neutral” to “buy” to reflect a more optimistic attitude towards “mid- to late-cycle” products such as lifting machinery and concrete machinery.

The bank expects the company's profit to increase 38% year-on-year in 2025 and 27% in 2026, and believes that the company is expected to increase its cash dividend by 25% from 0.32 yuan per share in 2024 to 0.4 yuan per share estimated in 2025. This move stemmed from a significant improvement in operating cash flow, which expanded 137% year-on-year in the first three quarters of 2025. The bank believes that two factors will have a positive impact on the stock price, including the proposed issuance of convertible bonds at a conversion price of HK$9.75; and cooperating with SF Holdings (06936) to develop the humanoid robot business.