HK Stock Market Move | ZOOMLION (01157) rose more than 3% as demand for domestic tower cranes increased. The company is expected to benefit from additional catalysis from national agricultural technology policies.

ZOOMLION (01157) rose more than 3%, as of press time, rose 2.54% to HKD 10.49, with a turnover of 62.5367 million Hong Kong dollars. Citi released a research report stating that the mainland market for tower cranes recorded a 7% year-on-year increase in shipments in January this year, ending a 30-month consecutive year-on-year decline trend since July 2023. This not only reflects a low base, but also indicates a slight improvement in market demand after China revoked the three red lines policy in the real estate industry, consistent with the bank's expectations. The improvement in recent utilization and leasing rates is expected to quickly increased demand for domestic tower cranes. The bank believes this news will positively catalyze ZOOMLION's share price, as ZOOMLION is the industry leader with a higher proportion of crane machinery business. It is worth mentioning that Citi's research report on February 5 pointed out that the Chinese State Council released the "Number One Document," aimed at promoting the modernization of the agricultural industry and promoting the comprehensive revitalization of rural areas. The document also states that innovative technologies such as AI, drones, and robots should be used to improve the productivity of China's agricultural industry. The bank believes that among Chinese machinery equipment manufacturers, this document is particularly positive for ZOOMLION. It is estimated that around 8% of the company's revenue in 2026 will come from the agricultural machinery business. Based on the bank's observation of ZOOMLION's 90-day upward catalysts, it believes the "Number One Document" can be seen as an additional catalyst.