20231114-招银国际-China_Construction_Machinery__Assessing_the_impact_of_the_European_Commission_s_anti-dumping_investigation_against_China-made_AWP_2页_426kb

CMB International Securities Equity Research Summary

Key Points

• This report from CMB International Securities analyzes the potential impact of the European Commission's anti-dumping investigation against imports of mobile access equipment (MAE) from China. The investigation was announced on November 13, 2023, covering products designed for lifting persons with a max. working height of 6 meters or more.

• Main Implications: Chinese AWP manufacturers have time (13-14 months) to mitigate risks, such as localizing production overseas or leveraging experience in anti-dumping cases to secure lower tariffs.

• Company-Specific Analysis:

  • Zhejiang Dingli (603338 CH, BUY, TP RMB70): 70% overseas revenue, with Europe and US each contributing 35%. Despite US duties (anti-dumping 17.78%, countervailing 23.43%), Dingli performs well; rich experience in EU investigations may minimize impact.
  • Zoomlion (1157 HK, 000157 CH, BUY, TP HK$6.35/RMB7.3): Minimal overseas AWP sales (5% in 3Q23), so impact is limited; Zoomlion has overseas production bases in Italy, Germany, and Mexico to establish capacity.
  • Jiangsu Hengli (601100 CH, BUY, TP RMB83): Provides hydraulic components, which are not targeted by the investigation; potential impact is insignificant.

• Other Stocks Discussed: The report references multiple related reports on companies like SANY International, China Construction Machinery, and Weichai Power, with ratings ranging from BUY to HOLD.

• Ratings: CMBIGM uses a scale where BUY indicates potential returns >15% over 12 months, HOLD indicates returns from +15% to -10%, etc.

• Publication Date: November 14, 2023.

• Disclosures: Includes analyst certification and risk disclosures, emphasizing that past performance does not guarantee future results and readers should consult independent advisors.

• Overall, the report assesses China's construction machinery sector as resilient to the investigation due to diversification and global presence, maintaining positive ratings.