Bank of America Securities published a rating report stating that China Union Heavy Industries announced that its subsidiaries, Zhonglian Hi-Tech and Luchang Technology, plan to be split and listed after the restructuring. Luchang Technology plans to distribute and issue new shares to current shareholders of Zhonlian Hi-Tech to purchase 100% of Zhonlian Hi-Tech's shares. After the transaction is completed, Luchang Technology will prompt Zhonglian Hi-Tech to place shares to raise capital. The bank believes that the above deal will be completed in the second half of this year at the earliest. In the long run, this split is better than the company's aerial work platform (AWP) business, which is expected to contribute 5.3 billion yuan of revenue to FY2022, accounting for 13% of the total. The bank raised its target price from HK$4.2 to HK$4.5 and maintained its rating as neutral.
美银证券：上调中联重科目标价至4.5港元 评级中性
Bank of America Securities: Raising the target price of Zhonglian Heavy Stock to HK$4.5 with a neutral rating
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