UBS Group published a report, lowering the earnings per share forecast for ZOOMLION (01157.HK) for 2024 to 2026 by 11% to 21%, reflecting that domestic revenue this year has been far below expectations, although the gross margin is slightly higher than the bank's expectations. It maintains a "neutral" rating, with the Target Price slightly decreased from 6.2 yuan to 6.1 yuan, believing that although domestic Business still faces pressure, the downside risk is limited.

The bank explained that China's "moderately loose" MMF policy can drive accelerated Infrastructure investment and improve cash flow for downstream customers. Additionally, ZOOMLION's overseas growth can remain above its peers, although the growth rate may further slow.

The bank indicated that ZOOMLION Listed in Hong Kong has risen by 43% since the beginning of the year, mainly reflecting the potential Bullish factors of policy easing, as well as attractive dividend yields and Share Buyback. Current valuations are reasonable.