The Zhitong Finance App learned that Xiaomo released a research report saying that it downgraded the Zhonlian Heavy Industry (01157) rating from “neutral” to “reduced holdings”, believing that it has a high risk exposure in the real estate industry. The target price was lowered from HK$3.9 to HK$3.2. The industry preferred Weichai Power (02338), Sany Heavy Industries and Zhejiang Dingli. It also maintained China's Longgong (03339) “increase holdings” rating, believing that the company's balance sheet is stable, cash flow is strong, and its exposure to the real estate market is low. The target price was lowered from HK$1.9 to HK$1.8.

The bank said that considering the demand trend in the first four months of this year, it noticed the difference in sales of construction machinery and heavy goods vehicles. The former was dragged down by the mainland's IV emission standard upgrade, which dragged down the inventory of off-road machinery, and was affected by the low housing operating rate from the beginning of the year to now (down 21% from the previous year). Furthermore, the company's first-quarter results can also be seen from the above differences in basic demand. Weichai Power's profit rebounded and outperformed, followed by Zhejiang Dingli (603338.SH), Sany Heavy Industries (600031.SH), and Hengli Hydraulic (), while Zhonglian Heavy Industry's performance clearly lagged behind. 601100.SH