1157:HKEXZoomlion Heavy Industry Science and Technology Co., Ltd. Analysis
Data as of 2026-06-02 - not real-time
HK$7.21
Latest Price
5/10Risk
Risk Level: Medium
Executive Summary
Zoomlion trades at HKD 7.21, sitting just above its calculated support of 7.10 and well below the resistance of 8.58, indicating limited upside in the immediate term. The RSI 14‑day of 32.5 and a bearish MACD histogram suggest the stock is currently oversold and momentum is turning negative, while volume trends are decreasing, reinforcing a near‑term hold stance.
The company boasts a PE of 12.43 versus an industry average of 29.79 and a PB of 0.92, flagging it as undervalued on a pure valuation basis. A dividend yield of 10.74% with a 99.6% payout appears attractive, yet free cash flow is negative (‑5.2 bn) and debt‑to‑equity is high (66.1), raising concerns on dividend sustainability. Recent material news highlights the launch of a new MEWP Intelligent Factory in Hungary and accelerated deployment of ultra‑large hydraulic excavators, underscoring strategic expansion and potential revenue tailwinds despite the current cash‑flow strain.
The company boasts a PE of 12.43 versus an industry average of 29.79 and a PB of 0.92, flagging it as undervalued on a pure valuation basis. A dividend yield of 10.74% with a 99.6% payout appears attractive, yet free cash flow is negative (‑5.2 bn) and debt‑to‑equity is high (66.1), raising concerns on dividend sustainability. Recent material news highlights the launch of a new MEWP Intelligent Factory in Hungary and accelerated deployment of ultra‑large hydraulic excavators, underscoring strategic expansion and potential revenue tailwinds despite the current cash‑flow strain.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 5/10
Key Factors
- bearish MACD and low RSI indicating near‑term momentum weakness
- decreasing volume trend reducing short‑term liquidity
- price positioned just above support limiting upside potential
Medium Term
1–3 yearsPositive
Model confidence: 6/10
Key Factors
- significant valuation discount (PE 12.4 vs industry 29.8)
- strategic European factory expansion enhancing growth outlook
- high dividend yield despite cash‑flow concerns
Long Term
> 3 yearsPositive
Model confidence: 7/10
Key Factors
- consistent undervaluation on PE/PB metrics
- low beta (0.5) and modest volatility indicating defensive profile
- strong cash reserves and expanding product portfolio supporting sustainability
Key Metrics & Analysis
Financial Health
Revenue Growth6.90%
Profit Margin8.18%
P/E Ratio12.4
ROE7.41%
ROA1.92%
Debt/Equity66.12
P/B Ratio0.9
Op. Cash FlowHK$5.1B
Free Cash FlowHK$-5213478912
Industry P/E29.8
Technical Analysis
TrendNeutral
RSI32.5
SupportHK$7.10
ResistanceHK$8.58
MA 20HK$7.69
MA 50HK$8.22
MA 200HK$7.93
MACDBearish
VolumeDecreasing
Fear & Greed Index92.77
Valuation
Fair ValueHK$5.09
Target PriceHK$9.35
Upside/Downside29.64%
GradeUndervalued
TypeValue
Dividend Yield10.74%
Risk Assessment
Beta0.40
Volatility34.80%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskMedium
Similar Tickers
This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.