China's Lonking Holdings H1 profit rises on higher revenue, impairment loss reversal

Lonking Holdings

26/08/2026 11:23

Overview
China construction machinery maker's H1 revenue rose 19% yr/yr
Net income attributable to shareholders increased 22.3% yr/yr

Outlook
Lonking expects H2 construction-machinery demand to sustain positive trajectory on equipment renewal and infrastructure projects
Company expects overseas construction-machinery exports to sustain strong growth as Belt and Road and emerging-market infrastructure spending expands

Result Drivers
INFRASTRUCTURE AND EXPORT DEMAND – Revenue rose 19.0%, driven by domestic infrastructure spending and overseas expansion; wheel-loader and excavator sales grew 37% and 28%
 
COST CONTROL AND MIX – Quality enhancement and cost control lifted gross margin 1.27 percentage points to 21.55%, contributing to profit growth
RECEIVABLES IMPAIRMENT REVERSAL – A RMB2.1 mln net reversal of trade-receivable provisions reduced impairment losses and supported profit growth

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
RMB 6.66 bln
 
H1 Net Income Attributable
 
RMB 773.10 mln
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
Wall Street's median 12-month price target for Lonking Holdings Ltd is HK$3.20, about 0.5% below its August 26 closing price of HK$3.19
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)