Investment Rating - The report maintains a "BUY" rating for SANY International with an unchanged target price of HK$8, indicating a potential upside of 24.8% from the current price of HK$6.41 [2][5]. Core Views - SANY International is expected to report a net profit decrease of approximately 15% year-on-year for 1Q24E, primarily due to reduced capital expenditure from miners, increased competition in certain product segments, and losses in the solar power segment. However, a recovery is anticipated in the second half of 2024, driven by improvements in the solar business and strong overseas demand for large mining trucks and telescopic handlers [2][3]. Financial Summary - Revenue for FY24E is projected to reach RMB 26,717 million, reflecting a year-on-year growth of 31.8% [4][19]. - Adjusted net profit for FY24E is estimated at RMB 2,131.3 million, with a growth rate of 10.5% compared to FY23A [4][19]. - The earnings per share (EPS) for FY24E is forecasted to be RMB 0.67, with a price-to-earnings (P/E) ratio of 8.8x [4][19]. Segment Performance - Mining equipment revenue is expected to decline by approximately 15% year-on-year due to decreased sales of coal mining equipment and a slowdown in wide-body truck sales, despite some growth in large-size mining trucks [3][4]. - Logistics equipment revenue is projected to grow by around 25% year-on-year, driven by strong demand for small-size port machinery and a solid backlog of large-size machinery [3][4]. - The solar power segment is anticipated to remain loss-making in 1Q24E, but the completion of certain projects may help mitigate losses in the future [3][4]. Market Context - The report highlights that the coal mining sector in China is experiencing a downturn, which is impacting SANY International's performance. However, the company is expected to benefit from strong overseas demand for its products, particularly in the mining and logistics sectors [2][3].

Financial Performance - Revenue for 2023 reached RMB 20,277,944 thousand, representing a 30.5% increase from RMB 15,536,716 thousand in 2022[23] - Gross profit increased by 50.1% to RMB 5,447,054 thousand, up from RMB 3,628,344 thousand in the previous year[23] - Net profit attributable to shareholders rose by 15.9% to RMB 1,928,992 thousand, compared to RMB 1,664,911 thousand in 2022[23] - Total assets grew by 40.1% to RMB 34,963,011 thousand, up from RMB 24,953,269 thousand in 2022[23] - The company reported a gross margin of 26.9%, an increase of 3.5 percentage points from 23.4% in 2022[23] - Other income and gains amounted to approximately RMB 715.2 million, an increase of about 10.6% from RMB 646.9 million in the previous year, primarily due to increased government subsidies and interest income[42] - The company's cost of sales was approximately RMB 14,830.9 million, up about 24.5% from RMB 11,908.4 million in the previous year, mainly due to a significant increase in product sales revenue[43] - The gross profit margin improved to approximately 26.9%, up about 3.5 percentage points from 23.4% in the previous year, driven by a higher proportion of high-margin product sales and cost reduction measures[44] - The company's pre-tax profit margin decreased to approximately 11.1%, down about 1.3 percentage points from 12.4% in the previous year, primarily due to a significant increase in R&D expenses[52] Cash Flow and Investments - The operating cash flow increased significantly by 132.8% to RMB 2,524,032 thousand from RMB 1,084,438 thousand in 2022[23] - For the year ending December 31, 2023, the group's net operating cash inflow was approximately RMB 2,524.0 million, a significant increase from RMB 1,084.4 million for the year ending December 31, 2022, primarily due to value sales and improved receivables collection[62] - The group's net investing cash outflow for the year ending December 31, 2023, was approximately RMB 4,965.1 million, compared to a cash inflow of RMB 639.2 million for the year ending December 31, 2022, mainly due to cash payments for the acquisition of oil and gas equipment business and asset procurement[62] - The group's net financing cash inflow for the year ending December 31, 2023, was approximately RMB 2,960.6 million, a turnaround from a net cash outflow of RMB 376.8 million for the year ending December 31, 2022, primarily due to increased bank borrowings[62] Strategic Initiatives - The company is focusing on digitalization, low-carbon initiatives, and global expansion to enhance product planning and service quality[22] - The company plans to focus on six strategic battles, including globalization, digitalization, and low-carbon initiatives, to enhance competitiveness and market presence[39][40] - The company is actively involved in ESG initiatives, with several board members appointed to the ESG committee to enhance sustainability practices[90] - The company is focused on expanding its market presence and enhancing its product offerings through strategic investments and partnerships[90] - The company aims to focus on high-quality development principles while implementing globalization, digitalization, and low-carbon strategies[149] Research and Development - Research and development expenses for the year reached approximately RMB 1,681.6 million, a substantial increase of 95.5% year-on-year[38] - The company launched the EBZ200S intelligent tunneling machine, enhancing production efficiency and significantly improving the level of automation in tunneling operations[30] - Significant investment in talent and new product development has led to breakthroughs in intelligent mining equipment, including smart cutting and smart anchoring technologies[151] - The logistics equipment sector is developing four types of intelligent products, including automated cranes and unmanned stackers, to lead the industry[151] - The company is enhancing its supply chain for electric products and increasing the proportion of R&D personnel dedicated to electrification[151] Acquisitions and Partnerships - The company completed the acquisition of Sany Petroleum Technology Hong Kong Limited for RMB 2,980 million, expanding its business into oil and gas equipment[22] - The group completed the acquisition of Sany Petroleum and its subsidiaries for RMB 2,980 million on June 10, 2023, making Sany Petroleum a wholly-owned subsidiary[71] - The company established strategic cooperation with Schlumberger to deepen collaboration in equipment manufacturing, technology development, and digitalization[34] Market and Economic Risks - The company anticipates continued reliance on the Chinese economy for revenue, which poses risks if economic growth declines[153] - Fluctuations in steel and raw material prices are expected, which could adversely affect the company's operational performance[154] Corporate Governance and Leadership - The company has a strong leadership team with members holding advanced degrees, including an EMBA from CEIBS and a bachelor's degree in chemical machinery[82] - The independent non-executive directors bring diverse experience from various sectors, including finance, engineering, and corporate governance, which strengthens the board's oversight capabilities[88] - The leadership team has a combined experience of over 30 years in design and technical management, contributing to the company's innovation and project execution capabilities[81] - The company’s board confirmed compliance with corporate governance codes for the year ended December 31, 2023[191] Shareholder Information - The company reported a final dividend of HKD 0.19 per share, totaling approximately HKD 606 million based on 3,189,660,321 shares as of February 29, 2024[103] - The company aims to balance shareholder expectations with prudent capital management through a sustainable dividend policy, considering macroeconomic conditions and industry competition[102] - The company has issued 479,781,034 convertible preferred shares, which entitle holders to a cumulative preferred distribution of approximately HKD 96,388 for the year 2023[105] - The company’s financial performance and asset, liability, and equity summaries for the past five fiscal years are detailed in the annual report[106] Employee and Director Relations - Employee development is a priority, with training programs and incentives in place to enhance skills and job satisfaction[158] - The remuneration committee regularly reviews the compensation levels of all directors to ensure appropriateness[174] - The company has established indemnity provisions for directors and senior officers, effective for the year ending December 31, 2023[171] Environmental and Social Responsibility - The company is committed to environmental protection and compliance with relevant regulations, aiming to reduce its environmental impact[163][164] - The company has established long-term relationships with suppliers to ensure quality and ethical standards are met[159]

M N 29 Mar 2024 CMB International Global Markets | Equity Research | Company Update SANY International (631 HK) Solar power business remains major investor concern during site visit Target Price HK$8.00 We attended SANYI’s 2023 post-results meeting together with >70 investors and analysts in the Company’s production base in Zhuhai on 28 Mar. During the (Previous TP HK$15.40) meeting, most of the questions were related to the solar power business. Given Up/Downside 59.0% SANYI’s determination to invest in so ...

Financial Performance - The company achieved revenue of approximately RMB 20,277.9 million for the year ended December 31, 2023, representing an increase of about 30.5% compared to RMB 15,536.7 million for the year ended December 31, 2022[4]. - The net profit attributable to the owners of the parent company was approximately RMB 1,929.0 million, an increase of about 15.9% from RMB 1,664.9 million in the previous year[6]. - The gross profit margin improved to approximately 26.9%, up about 3.5 percentage points from 23.4% in the previous year[6]. - The company reported a total comprehensive income of RMB 1,870.5 million for the year, compared to RMB 1,662.7 million in the previous year[9]. - Total revenue for the year ended December 31, 2023, reached RMB 20,277,944,000, a significant increase from RMB 15,536,716,000 in 2022, representing a growth of approximately 30%[33][36]. - The adjusted profit before tax for the group was RMB 2,260,450,000, with a net profit of RMB 1,838,754,000 after tax expenses of RMB 421,696,000[29]. - The total tax expense for the year 2023 amounted to RMB 421,696,000, an increase of 67.3% compared to RMB 251,859,000 in 2022[53]. - The effective tax rate for 2023 was 18.6%, compared to 13.1% in 2022, reflecting a significant increase in tax liabilities[53]. Research and Development - Research and development expenses increased to approximately RMB 1,681.6 million, a rise of about 95.5% from RMB 860.0 million in the previous year, accounting for about 8.3% of revenue[6]. - The company's research and development expenses exceeded RMB 208,069,000, accounting for 9.2% of the pre-tax profit, compared to 6.7% in 2022[53]. - Research and development expenses for the year ended December 31, 2023, were approximately RMB 1,681.6 million, a rise of about 95.5% from RMB 860.0 million for the year ended December 31, 2022, with R&D expenses accounting for about 8.3% of revenue, up 2.8 percentage points from 5.5%[97]. Assets and Liabilities - The total assets less current liabilities amounted to RMB 18,790.4 million, an increase from RMB 14,117.5 million in the previous year[13]. - The company’s total liabilities increased to RMB 23,424.6 million, up from RMB 14,849.5 million in the previous year[13]. - The group's total current assets as of December 31, 2023, were approximately RMB 20,778.3 million, compared to RMB 17,190.7 million as of December 31, 2022[104]. - The group's total liabilities as of December 31, 2023, were approximately RMB 23,424.6 million, an increase from RMB 14,849.5 million as of December 31, 2022, resulting in a debt-to-asset ratio of approximately 60.2%[104]. Cash Flow and Financing - The company’s cash and cash equivalents increased to RMB 3,241.1 million from RMB 2,689.8 million in the previous year[11]. - The company’s cash-generating units for goodwill impairment testing include logistics equipment, oil and gas equipment, and lithium battery equipment, with respective recoverable amounts based on cash flow forecasts[61][63][64]. - The group's cash and cash equivalents as of December 31, 2023, totaled approximately RMB 3,241.1 million, with net operating cash inflow of approximately RMB 2,524.0 million for the year ended December 31, 2023, compared to RMB 1,084.4 million for the year ended December 31, 2022[109]. - The company’s total financing costs for 2023 amounted to RMB 158,411 thousand, an increase from RMB 131,967 thousand in 2022, representing a rise of about 20%[51]. Market Expansion and Sales - The company expanded its international market presence significantly, resulting in substantial growth in international sales revenue[4]. - Revenue from external customers in mainland China was RMB 13,916,244,000, accounting for a substantial portion of total revenue[33]. - International sales revenue grew significantly, with a year-on-year increase of 50.7%, contributing to a 4.2 percentage point rise in the overall revenue share from international markets[89]. - The mining equipment segment generated revenue of RMB 12,501,388,000, while the logistics equipment segment contributed RMB 5,783,233,000, oil and gas equipment segment RMB 1,502,419,000, and emerging industry equipment segment RMB 490,904,000[29]. Corporate Governance and Compliance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules for the year ending December 31, 2023[131]. - The board proposed amendments to the existing articles of association to align with the latest listing rules effective from December 31, 2023[143]. Employee and Operational Growth - The group employed 9,324 full-time employees as of December 31, 2023, up from 6,441 in 2022, primarily due to acquisitions in the oil and gas equipment and emerging industry equipment segments[114]. - The company has ongoing commitments totaling RMB 1,562.4 million for contracts as of December 31, 2023, compared to RMB 688.6 million in 2022, indicating growth in contractual obligations[87]. Dividend and Shareholder Information - The proposed final dividend for ordinary shares is HKD 0.19 per share, totaling HKD 606,036,000, slightly up from HKD 602,850,000 in 2022[55]. - The board has proposed a final dividend of HKD 0.19 per share, totaling approximately HKD 606.04 million, subject to shareholder approval[128].

Investment Rating - Outperform the market [1] Core Views - The company is driven by both coal mining machinery and logistics equipment, with accelerated expansion into emerging industries such as robotics, lithium battery equipment, and oil fracturing equipment [4] - The company's coal mining machinery business is leading in electrification and intelligentization, with significant growth in revenue and market share [4] - The logistics equipment business is a top supplier in China, with a strong focus on electrification and international market expansion [4] - Emerging businesses, including robotics, lithium battery, and oil equipment, show promising growth potential [4] Company Overview - The company is a leading manufacturer of coal mining and logistics equipment in China, with a strong focus on intelligent and electrified products [11] - The company has a dual-driven business model, combining coal mining machinery and logistics equipment, while actively expanding into new industries [12] - The logistics equipment business is one of the most advanced in China, offering a wide range of products for port operations [13] - The company has been acquiring core assets from its parent group to expand into robotics, lithium battery, and oil equipment industries [14] - The company is controlled by Liang Wengen, who holds a significant stake in the parent group, Sany Group [15] - The company has experienced rapid revenue growth, with a CAGR of 44.3% in revenue and 48.6% in net profit from 2017 to 2022 [16] - The company's overseas sales have surged, with international revenue accounting for 27.2% of total revenue in 2022 [20] Coal Mining Machinery - The coal mining machinery industry remains highly active due to sustained coal demand and the push for intelligent transformation [21] - The company's coal mining machinery revenue grew by 73.1% in 2022, driven by intelligent and electrified products [29] - The company is a leader in intelligent coal mining equipment, with a market share of over 80% in intelligent tunneling machines [30] - The company is accelerating the launch of new energy and large-tonnage mining vehicles, with significant growth in overseas sales [32] Logistics Equipment - The logistics equipment business is benefiting from the trend of smart ports, with steady growth in revenue [35] - The company is a leader in electrified logistics equipment, with a 265% increase in electric product sales in 2022 [38] - The company has secured significant overseas orders, including a large-scale project with PSA in Singapore [40] Emerging Businesses - The robotics business has developed a comprehensive product system and successfully entered overseas markets [42] - The lithium battery equipment business was strengthened through the acquisition of Sany Technology Equipment, marking the company's entry into the lithium battery equipment market [47] - The oil equipment business was expanded through the acquisition of Sany Petroleum Technology, with a focus on the oil fracturing market [49] - The company has entered the photovoltaic and hydrogen energy equipment sectors, with significant potential for future growth [53] Financial Projections - The company is expected to achieve a net profit of 2.27 billion, 2.93 billion, and 3.42 billion yuan in 2023, 2024, and 2025, respectively [55] - The company's EPS is projected to be 0.71, 0.92, and 1.07 yuan for 2023, 2024, and 2025, respectively [55] - The company's valuation is based on a PE multiple of 8-10x for 2024, with a target price range of 8.11-10.14 HKD [55]

财联社2月26日讯（编辑 胡家荣）受益于政策利好，在港股上市的重型机械股多数上涨。其中三一重工大涨超17%并领先其板块，紧随其后的是，中国重汽(03808.HK)、第一拖拉机股份(00038.HK)等相关个股均分别上涨6.91%、2.54%。 注：港股重型机械股的表现 2月23日下午，中央财经委员会第四次会议召开。会议研究大规模设备更新和消费品以旧换新问题，以及有效降低全社会物流成本问题。 对此华创证券指出，通用设备作为中游工业投资品，其增长动力受下游需求驱动，具备典型周期性成长特征。下游资本开支波动传导至上游，形成补库存和去库存的库存周期，在大规模设备更新政策和产业升级趋势影响下，有望率先受益。通用设备主要包括工业母机、注塑机、工业机器人、工控、工程机械等。 此外，上海证券近日指出，万亿国债项目全部下达完毕，工程机械需求或有望边际改善。该券商还指出，万亿国债项目的陆续落地或将加速挖掘机、装载机、推土机、压路机等库存的消化，考虑到宏观经济政策效果显现存在滞后性，托底效应在后续项目开工率、开工小时提升上或有所体现。 三一国际和中国重汽涨幅居前 受以上消息提振，作为港股重型机械股代表的三一国际和中国重汽表现居前 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部分內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 SANY HEAVY EQUIPMENT INTERNATIONAL HOLDINGS COMPANY LIMITED （於開曼群島註冊成立之有限公司） 三一重裝國際控股有限公司 （股份代號：631） 內幕消息 截至2023年9月30日止九個月及截至2023年9月30日止三個月的 未經審核財務數據 摘要 本公告乃由三一重裝國際控股有限公司根據上市規則第13.09(2)條及香港法例第 571章證券及期貨條例第XIVA部項下內幕消息條文（定義見上市規則）作出。 截至2023年9月30日止九個月 — 期間未經審核綜合收入約為人民幣15,836,777,908元，較2022年同期的約人 民幣11,600,372,777元增加約36.5%。 — 期間未經審核綜合毛利約為人民幣4,308,415,189元，較2022年同期的約人民 幣2,700,975,831元增加約59.5%。 — 期間未經審核綜合溢利淨額約為人 ...

Financial Performance - The company achieved a revenue of approximately RMB 10,839.2 million for the first half of 2023, representing a year-on-year growth of 42.0%[12]. - Net profit attributable to the parent company reached RMB 1,201.9 million, an increase of 32.7% compared to the same period in 2022[12]. - International sales grew significantly, with a revenue increase of 68.3%, and international revenue now accounts for 29.9% of total revenue[12]. - The gross profit margin improved to approximately 26.1%, up 2.3 percentage points from 23.8% in the same period last year, attributed to higher sales of products with better margins and cost reduction measures[27]. - The company reported a total comprehensive income of RMB 1,301,217 thousand for the first half of 2023, compared to RMB 887,944 thousand in the first half of 2022, reflecting a year-on-year increase of approximately 46.5%[136]. - The group recognized a foreign exchange gain of RMB 33,217,000 in 2023, compared to a loss of RMB 20,483,000 in 2022, indicating a positive turnaround[161]. - The company reported a net profit of RMB 1,183,305 thousand for the period, after accounting for income tax expenses of RMB 257,297 thousand[147]. Research and Development - The company increased its R&D expenditure ratio to 6.9%, up by 1.4 percentage points year-on-year, with electric products revenue growing by 135%[13]. - Research and development expenses rose to approximately RMB 748.4 million, a 79.7% increase from RMB 416.4 million in the same period last year, with R&D expenses accounting for 6.9% of revenue[29]. - The company is focusing on developing low-carbon technology products and solutions as part of its R&D strategy, including the SET150S energy-efficient mining truck and the EBZ280D intelligent tunneling machine[57]. - The company has established partnerships with institutions like the Chinese Academy of Sciences and Northeast University to promote technological innovation and development[57]. Acquisitions and Business Expansion - The company completed the acquisition of Sany Petroleum Technology Hong Kong Limited for RMB 2,980 million, expanding its business into the oil and gas equipment sector[14]. - The company completed the acquisition of Sany Petroleum Technology Hong Kong Limited for RMB 2,980 million on June 10, 2023, making it a wholly-owned subsidiary[50]. - The company expanded its reportable segments from two to four, reflecting an enlarged business structure[143]. Cash Flow and Assets - Cash flow from operating activities increased significantly to RMB 985.1 million, a rise of 893.3% compared to the previous year[4]. - The total assets of the company reached RMB 35,986.9 million, reflecting a growth of 55.5% year-on-year[4]. - As of June 30, 2023, total current assets amounted to approximately RMB 23,816.3 million, up from RMB 17,190.7 million as of December 31, 2022[36]. - The company raised RMB 2,789,896 thousand through new bank loans in the first half of 2023, compared to RMB 1,470,529 thousand in the same period of 2022, indicating a 89.5% increase in financing activities[137]. Employee and Corporate Governance - The company employed a total of 9,700 employees as of June 30, 2023, an increase from 6,441 employees as of December 31, 2022[47]. - The company has adopted good corporate governance practices and complied with all applicable code provisions during the reporting period[100]. - The board consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors, ensuring a diverse range of expertise[107]. Share Options and Incentives - The company has implemented a stock option plan and a restricted share incentive plan to incentivize its directors and senior management[61]. - The new 2023 Share Option Scheme was approved on August 11, 2023, to replace the expired 2013 scheme, expanding the definition of eligible participants[75]. - The purpose of the 2023 Share Option Scheme is to incentivize eligible participants to contribute more significantly to the group's future performance and to reward past contributions[77]. - The remuneration committee has approved the grant of a total of 11,613,671 restricted shares to recognize contributions to the group's development and maintain long-term stability of the core management team[118]. Market Position and Strategy - The market share for intelligent tunneling machines reached 80%, demonstrating the company's industry leadership[13]. - The company plans to continue advancing its globalization, digitalization, and low-carbon strategies, focusing on high-reliability and cost-effective products[17]. - The company aims to enhance customer satisfaction through innovative service models and rapid response mechanisms[17]. Financial Ratios and Liabilities - The debt-to-asset ratio was approximately 61.4% as of June 30, 2023, compared to 50.9% as of December 31, 2022[37]. - Total liabilities increased to RMB 18,541,336 thousand from RMB 10,835,778 thousand, reflecting a growth of 71.5%[130]. - The total tax expense for the six months ended June 30, 2023, was RMB 257,297,000, up from RMB 111,352,000 in 2022, indicating a rise of about 131.9%[165].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而 產生或因依賴該等內容而引致的任何損失承擔任何責任。 SANY HEAVY EQUIPMENT INTERNATIONAL HOLDINGS COMPANY LIMITED 三 一 重 裝 國 際 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：631） 截至2023年6月30日止六個月之中期業績公告 三一重裝國際控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及其 附屬公司（統稱「本集團」）截至2023年6月30日止六個月的未經審核簡明綜合中期業績。 財務摘要 截至2023年6月30日止六個月，本集團實現收入約人民幣10,839.2百萬元，較截至2022 年6月30日止六個月的約人民幣7,631.7百萬元增加約人民幣3,207.5百萬元，增長約 42.0%。該等增加乃主要由於(1)智能化、電動化新產品持續滲透市場，使得本集團綜 採、寬體車、小港機及大港機產品收入大幅增加；(2)國際市場拓展成效顯著，國際銷 售收 ...

Financial Performance - The unaudited consolidated revenue for the three months ended March 31, 2023, was approximately RMB 5,438,236,000, an increase of about 32.1% compared to RMB 4,115,646,000 for the same period in 2022[2] - The unaudited consolidated gross profit for the same period was approximately RMB 1,330,265,000, representing a 52.9% increase from RMB 869,789,000 in 2022[2] - The unaudited consolidated net profit for the period was approximately RMB 646,782,000, up about 45.3% from RMB 445,003,000 in the same period of 2022[2] - The net profit attributable to the parent company was approximately RMB 650,256,000, an increase of about 46.4% compared to RMB 444,063,000 in 2022[3] Growth Drivers - The significant increase in revenue and net profit was primarily driven by accelerated construction of smart mines and smart ports due to national policies, leading to substantial growth in the sales of products such as wide-body trucks and port machinery[4] - The company's internationalization strategy has shown significant results, with substantial growth in international sales of wide-body trucks, tunneling machines, and port machinery products[5] - The implementation of digital and intelligent operations has improved overall product gross profit margins, contributing to the substantial increase in profitability[5]