Zoomlion (1157 HK) – Profit Warning. Significant portion of its customers is now beyond repair and inadequate provisions for its financial leases

http://blogs.barrons.com/asiastocks/2015/04/14/zoomlion-slumps-on-profit-warning-barclays-downs-to-sell/?mod=BOL_hp_blog_astw

Meanwhile, will Zoomlion be able to collect cash from its sales? Will we see write-downs? The Barclays analysts wrote: Overdue finance lease receivables increased 5ppt to 30% at end-2014. Management commented that the average payback period for its machinery is six years. As such, we believe the financials of a significant portion of its customers is now beyond repair and that Zoomlion’s provisions for its financial leases (3.8% in 2014, down from 4.0% in 2013) is inadequate.

15 April 15

(1157) Zoomlion Heavy Industry Science and Technology Company(H): Zoomlion Heavy Industry Science and Technology issued profit warning and expects to record a net loss attributable to the equity shareholders of RMB300 m to RMB390 m for the first three months of 2015 due to the continuous slowdown in the growth of fixed assets investment of the State, especially the slowdown in the growth of real estate investment, the demand in the construction machinery market continued to be weak, which represented a relatively substantial persistent impact on the overall sales revenue and net profit.

(1157) Zoomlion Heavy Industry Science and Technology Company(H): Zoomlion said the joint research group which was formed by five departments, including the SASAC and MIIT investigated the operation of Zoomlion recently. Zoomlion’s chairman Zhan Chunxin said that the company will strive to achieve a 15% growth or higher in annual revenue in 2015.

20 January 15  

(1157) Zoomlion Heavy Industry Science and Technology Company(H): Zoomlion Heavy Industry Science and Technology Co., Ltd issued profit warning and expects net profit attributable to the equity shareholders for the year of 2014 to drop 70-80% YoY due to the continuous slowdown in the growth of fixed-assets investment of the State, especially the slowdown in the growth of real estate investment, the demand in the construction machinery market was weak.

http://blogs.barrons.com/asiastocks/2015/04/14/zoomlion-slumps-on-profit-warning-barclays-downs-to-sell/?mod=BOL_hp_blog_astw

April 14, 2015, 9:56 P.M. ET

Zoomlion Slumps On Profit Warning; Barclays Downs To Sell

By Shuli Ren

Shares of Zoomlion (1157.Hong Kong) fell by over 5% this morning after the construction machinery manufacturer issued a profit warning. Continue reading

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