Company Overview - Lingong Heavy Machinery Co., Ltd. has submitted its listing application to the Hong Kong Stock Exchange, with China International Capital Corporation and Xingzheng International as joint sponsors [1] - The company is a global leader in mining and aerial work equipment, focusing on providing intelligent, efficient, and green solutions through innovation and technology [3] - As of November 1, 2025, Lingong Heavy Machinery's sales network has reached over 100 countries and regions, holding significant positions in major markets across Asia, Europe, Africa, and the Americas [3] Market Position - According to Frost & Sullivan, Lingong Heavy Machinery ranks third among domestic companies in the global mining transportation equipment and excavator market based on 2024 revenue [3] - The company is ranked first in the global non-road wide-body dump truck sector and first in the global new energy mining transportation equipment sector among domestic companies, based on 2024 revenue [3] - In the global aerial work equipment market, Lingong Heavy Machinery ranks fifth among domestic companies, and third in the Asia-Pacific region based on 2024 revenue [3] Product Offerings - The company's mining transportation equipment includes diesel non-road wide-body dump trucks, new energy non-road wide-body dump trucks, mining dump trucks, and articulated trucks, which have become mainstream products in the 50-100 ton range [4] - As of June 30, 2025, Lingong Heavy Machinery has shipped nearly 600 mining excavators and approximately 1,600 new energy mining transportation devices [4] Financial Performance - Revenue for Lingong Heavy Machinery from 2022 to 2024 was RMB 10.529 billion, RMB 9.897 billion, and RMB 12.028 billion, respectively, with revenue of RMB 5.531 billion for the six months ending June 30, 2025 [5] - The company reported net profits of approximately RMB 0.954 billion, RMB 0.974 billion, and RMB 1 billion for the fiscal years 2022, 2023, and 2024, respectively, with net profits of RMB 0.635 billion for the six months ending June 30, 2025 [6] Profitability Metrics - The overall gross profit margins for Lingong Heavy Machinery were 17.7%, 18.8%, 20.1%, and 22.4% for the fiscal years 2022, 2023, 2024, and the six months ending June 30, 2025, respectively [9] Industry Overview - The global mining market size has grown from RMB 38.5 trillion in 2020 to RMB 54.8 trillion in 2024, with a compound annual growth rate (CAGR) of 9.3% from 2020 to 2024 [11] - The global mining equipment market is expected to expand from RMB 736.7 billion in 2024 to RMB 1,025.6 billion by 2030, with a CAGR of 5.7% from 2024 to 2030 [11] - In China, the mining equipment market is projected to reach RMB 123 billion by 2024, growing at a CAGR of 6.3% and expected to reach RMB 177.1 billion by 2030 [12]

Company Overview - Lingong Heavy Machinery Co., Ltd. has submitted a listing application to the Hong Kong Stock Exchange, with China International Capital Corporation and Xingsheng International as joint sponsors [1] - The company is a global leader in mining and aerial work equipment, focusing on providing intelligent, efficient, and green solutions through innovation and technology [3] - Lingong Heavy Machinery is the first domestic manufacturer to develop electric-controlled mining excavators, known for their high reliability and stability [3] Market Position - As of November 1, 2025, Lingong Heavy Machinery's sales network has reached over 100 countries and regions, holding significant positions in major markets across Asia, Europe, Africa, and the Americas [3] - According to Frost & Sullivan, the company ranks third among domestic enterprises in the global mining transportation equipment and excavator market based on 2024 revenue [3] - The company ranks first in the global non-road wide-body dump truck sector and first in the global new energy mining transportation equipment sector among domestic companies, based on 2024 revenue [3] Product Offerings - The company's mining transportation equipment includes diesel non-road wide-body dump trucks, new energy non-road wide-body dump trucks, mining dump trucks, and articulated trucks, which have become mainstream products in the 50-100 ton range [4] - As of June 30, 2025, Lingong Heavy Machinery has shipped nearly 600 mining excavators and approximately 1,600 new energy mining transportation devices [4] Financial Performance - The company's revenue for the years 2022 to 2024 was RMB 10.529 billion, RMB 9.897 billion, and RMB 12.028 billion, respectively, with revenue of RMB 5.531 billion for the six months ending June 30, 2025 [5] - Lingong Heavy Machinery reported net profits of approximately RMB 0.954 billion, RMB 0.974 billion, and RMB 1 billion for the years 2022 to 2024, with net profits of RMB 0.635 billion for the six months ending June 30, 2025 [6] Profitability - The overall gross profit margins for Lingong Heavy Machinery were 17.7%, 18.8%, 20.1%, and 22.4% for the years 2022 to 2025, respectively [9] Industry Overview - The global mining market is projected to grow from RMB 38.5 trillion in 2020 to RMB 54.8 trillion in 2024, with a compound annual growth rate (CAGR) of 9.3% [11] - The global mining equipment market is expected to expand significantly, reaching RMB 736.7 billion by 2024, with a CAGR of 5.9% from 2020 to 2024 [11] - The Chinese mining equipment market is projected to reach RMB 123 billion by 2024, growing at a CAGR of 6.3% [12] Equipment Demand - Excavation equipment, including mining excavators and drills, is expected to maintain its leading market position, driven by continuous demand for coal, metals, and industrial minerals [15] - The transportation equipment market is anticipated to grow significantly, with a projected increase from RMB 1.729 trillion in 2020 to RMB 3.451 trillion by 2030, reflecting a CAGR of 7.3% from 2024 to 2030 [15]

Investment Rating - The report maintains a "Buy" rating for the company [2][8] Core Views - The company reported H1 2025 revenue of 3.169 billion yuan, a year-on-year increase of 12.69%, and a net profit attributable to shareholders of 321 million yuan, up 8.3% year-on-year [5][8] - The domestic market shows a clear demand for the replacement of traditional fuel mining trucks with new energy models, with the market size expected to grow from 1.7 billion yuan in 2023 to 11.2 billion yuan in 2028, representing a CAGR of 45.7% [8] - The company has received multiple international awards, enhancing its technological leadership and global influence, ranking 39th in the 2025 Global Construction Machinery Manufacturers list [8] Financial Data and Profit Forecast - H1 2025 total revenue is projected at 6.961 billion yuan, with a year-on-year growth rate of 13.3% [7] - The net profit attributable to shareholders is expected to reach 868 million yuan in 2025, reflecting a year-on-year growth of 9.4% [7] - The company's gross margin is forecasted to improve from 19.8% in H1 2025 to 23.1% by 2027 [7] Market Position and Growth Potential - The company is positioned as a leader in the non-road wide-body dump truck market, with a significant market share and a strong order backlog [8] - The market for L4 level unmanned mining trucks is anticipated to reach a penetration rate of over 50% by 2030, with sales expected to grow from approximately 4,000 units in 2025 to about 16,340 units by 2030, representing a CAGR of 32.5% [8] - The company emphasizes its first-mover advantage in the non-road wide-body dump truck sector, maintaining a strong market position [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company achieved a revenue of 1.536 billion yuan in Q1 2025, representing a year-on-year growth of 28.34%, and a net profit attributable to shareholders of 187 million yuan, up 58.45% year-on-year [4] - The company is expected to maintain its profit forecast for 2025 while adjusting the forecast for 2026 downwards and introducing a new forecast for 2027, with projected net profits of 858 million yuan, 980 million yuan, and 1.091 billion yuan for 2025, 2026, and 2027 respectively [4] - The integration of new energy and autonomous driving technologies is expected to enhance the company's growth potential and profitability [4][6] Summary by Sections Section 1: Focus on Non-Road Wide Body Dump Trucks - The company is recognized as a national champion in non-road wide body dump trucks and is actively expanding into overseas markets [13] - The company has developed a range of products including fuel-driven, gas-driven, pure electric, and autonomous vehicles, positioning itself as a leader in intelligent and information technology applications [13][16] - The company has achieved a second-place market share in the autonomous driving dump truck segment in open-pit coal mines as of September 2024 [28] Section 2: Economic Benefits of Non-Road Wide Body Dump Trucks - Non-road wide body dump trucks have a lower purchase cost per ton compared to other types of dump trucks, making them economically advantageous [5][43] - The operational efficiency of non-road wide body dump trucks is significantly higher than that of traditional trucks, with a 30% increase in carrying capacity under similar conditions [45][47] Section 3: Financial Summary and Valuation Indicators - The company's revenue is projected to grow from 5.86 billion yuan in 2023 to 8.19 billion yuan in 2027, with a compound annual growth rate (CAGR) of 20.53% [7] - The net profit attributable to shareholders is expected to increase from 615 million yuan in 2023 to 1.091 billion yuan in 2027, with a CAGR of 31.43% [7] - The gross margin is anticipated to improve from 19.1% in 2023 to 22.2% in 2027, reflecting the higher profitability of new products [7][36] Section 4: Research and Development Focus - The company has significantly increased its R&D investment, with expenses growing from 37.59 million yuan in 2019 to 196 million yuan in 2024, representing a CAGR of 39.11% [21][24] - Key R&D projects include the development of large-scale hybrid dump trucks and autonomous driving technologies, aligning with national policies promoting green and intelligent mining [22][23] Section 5: Market Trends and Future Outlook - The market for non-road wide body dump trucks is expected to grow due to increasing demand in mining and infrastructure projects, with the industry size estimated at approximately 13 billion yuan in 2023 [52] - The company is well-positioned to capitalize on the growing trend of automation and new energy in the mining sector, with significant potential for market expansion [57]