China's ZCZL Industrial nine-month profit falls 35%

Overview

• China industrial equipment maker's nine-month revenue fell 5.9% yr/yr

• Net profit attributable to shareholders dropped 35% yr/yr

• Company cites reduced coal sector investment and competition for profit decline

Outlook

• Company did not provide specific guidance for future quarters or the full year in its press release

Result Drivers

• COAL MACHINERY WEAKNESS - Co said revenue from coal mining machinery fell due to cyclical adjustment in the coal sector and energy transition, leading coal mining enterprises to tighten capital spending and face intense industry competition

• AUTO PARTS GROWTH - Co said auto parts segment revenue rose 8.6% yr/yr, driven by higher sales of traditional motors in Europe and India and expansion in domestic new energy motor business

• RECEIVABLES COLLECTION - Co said strengthened collection of accounts receivable and reversal of bad debt provisions contributed to improved cash flow and performance

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the mining support services & equipment peer group is "buy."

Reuters Recommended Reads

• Oct 29 - Sany Heavy Equipment 9M profit falls on lower government grants

• Oct 29 - AGCO cites "weakest global industry demand in over a decade" for Q3 sales decline

• Oct 27 - China's Railway Signal Q3 profit drops on R&D spending

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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.)