"Big Banks" Citigroup: Mainland crane shipments regain growth, industry top pick is Zoomlion

Citigroup's research report indicates that in January this year, the shipment volume of tower cranes in the mainland market recorded a year-on-year growth of 7%, ending a continuous decline trend for 30 months since July 2023. This is not only due to a low base but also reflects a slight improvement in market demand following China's cancellation of the "three red lines" policy in the real estate sector, consistent with the bank's expectations that recent improvements in utilization and leasing rates will soon translate into increased demand for domestic tower cranes.

The bank expects this news to positively catalyze the stock prices of Zoomlion (01157.HK) and SANY INT'L (06031.HK). The bank's industry preference is Zoomlion due to its higher proportion of crane machinery business; target price is HKD 10.2, with a rating of "Buy."