Citigroup Sees Zoomlion (01157) Benefiting from China's Agricultural Tech Policy, Reiterates "Buy" Rating

Stock News
Feb 05

Citigroup has released a research report stating that China's State Council has published the "No. 1 Central Document," which aims to advance the modernization of the agricultural industry and promote comprehensive rural revitalization. The document also highlights the application of innovative technologies such as AI, drones, and robotics to enhance productivity within China's agricultural sector. The bank believes that among China's machinery and equipment manufacturers, this document is particularly positive for Zoomlion Heavy Industry Science And Technology Co.,Ltd. (01157). Estimates indicate that approximately 8% of the company's revenue in 2026 will be derived from its agricultural machinery business. Based on the bank's 90-day positive catalyst watch for Zoomlion, the "No. 1 Central Document" is viewed as an additional catalyst, leading to a reaffirmation of its "Buy" rating with a target price of HK$10.2.

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