Industry Outlook - The latest report by CMB International highlights that large overseas mining excavators and emerging markets will be growth areas in 2026 [1][2] - In the domestic market, growth drivers are expected to come from: (1) an upward cycle driven by the replacement of excavators; (2) early-stage recovery in demand for lifting machinery [1][2] Company Forecast - CMB International has raised the profit forecast for SANY Heavy Industry (06031) for 2025E-27E by 2-5%, primarily due to increased sales assumptions and higher financial income estimates following the recent Hong Kong IPO [1][2] - The valuation benchmark has been rolled over to 2026, maintaining a target price-to-earnings ratio of 24 times, which is 0.5 standard deviations above the historical average of 20 times since 2017, reflecting the profit upcycle [1][2] - The target price for SANY's A-shares has been increased to RMB 27 from RMB 24, with a reiterated "Buy" rating [1][2] - Coverage has been extended to SANY's H-shares, with a "Buy" rating and a target price of HKD 29.5, assuming no discount relative to A-shares [1][2]

Core Insights - A-shares have lower trading costs and better market liquidity compared to H-shares, with an overall premium of 20% for A-shares as indicated by the Hang Seng AH Premium Index (HSAHP) remaining above 120 [1][2] - A peculiar situation has arisen where H-shares of certain companies, such as CATL, are trading at higher prices than their A-shares, attributed to factors like limited liquidity and the preference of overseas investors for industry leaders [1][2][3] Group 1: Market Dynamics - The six companies experiencing H-share price premiums over A-shares include CATL, China Merchants Bank, Hengrui Medicine, Weichai Power, WuXi AppTec, and Midea Group, with others like Zijin Mining and BYD showing closer price alignment [2][3] - The phenomenon of "inverted pricing" is largely due to the smaller market capitalization of H-shares compared to A-shares, leading to relative scarcity in liquidity which drives up prices [2][3] Group 2: Investor Preferences - Foreign investors show a strong preference for industry leaders that are scarce in the international market, often leading to higher valuations for these companies in H-shares [4][5] - Companies with stable financials and established operational histories, particularly in traditional sectors like finance and energy, tend to attract more foreign investment, reflecting differing growth expectations between domestic and international investors [3][4] Group 3: Future Outlook - As large institutional investors gradually exit their positions, the liquidity of H-shares is expected to increase, potentially narrowing the premium of H-shares over A-shares [2][4] - The case of CATL illustrates this trend, where its H-share premium over A-shares decreased from over 30% to approximately 13% following the unlocking of shares held by certain investors [2][4]

Core Insights - The mining transportation equipment market is experiencing significant growth, with the market size expected to increase from 172.9 billion yuan in 2020 to 226.3 billion yuan in 2024, representing a growth in market share from 29.49% to 30.72% of the overall mining equipment sector [1][3][4]. Industry Definition and Classification - Mining equipment is specialized machinery used for mineral extraction, processing, and exploration, categorized into excavation equipment and transportation equipment, with the latter being crucial for transporting ore, waste, and personnel within mining sites [2][3]. Current Development Status - The demand for mining transportation equipment is rising due to the need for more efficient and reliable material transfer systems between mines and processing plants, with projections indicating a market size of 241.6 billion yuan by 2025 [3][4]. Industry Chain - The upstream of the mining transportation equipment industry includes raw materials like steel and non-ferrous metals, as well as core components such as hydraulic systems and electrical control systems. The midstream involves manufacturing and integration of transportation equipment, while the downstream applications span coal mining, metal mining, and large-scale construction [5][6]. Competitive Landscape - The global mining transportation equipment market features prominent international manufacturers such as Hitachi Construction Machinery, Komatsu, and Liebherr, while domestic players include SANY Heavy Industry, Shandong Mining Machinery, and XCMG [7][8]. Development Trends - The industry is moving towards automation, electric drive systems, and environmentally friendly solutions, with a focus on sustainable development and reduced environmental impact through the use of green conveyor belts and equipment [10].

Group 1: Core Insights - The report emphasizes that the AI wave is initiating a new cycle in intelligent manufacturing, shifting the investment focus from cyclical fluctuations to "new hard-core" assets that can define the future and support the AI trend [8][9]. - Human-shaped robots are highlighted as the ultimate embodiment of AI intelligence, expected to revolutionize labor liberation and serve as a universal platform for AI interaction with the physical world [9][10]. - The report identifies solid-state batteries as a key technology that will unlock performance ceilings for human-shaped robots and electric vehicles due to their high energy density and safety [9][10]. Group 2: Human-Shaped Robots - The human-shaped robot industry is transitioning from concept validation to commercialization, with companies that have developed product capabilities in key components likely to experience significant valuation increases [13][17]. - The investment strategy focuses on essential hardware components rather than single manufacturers due to the uncertainty in design solutions, creating unique investment opportunities [25][28]. - Key companies to watch in this sector include Xinjie Electric, Huichuan Technology, and Weichuang Electric, which are positioned to benefit from the growth in human-shaped robots [17][30]. Group 3: AI Equipment and Materials - The demand for AI-related infrastructure is surging, leading to significant growth in high-performance servers, GPUs, and advanced PCB requirements [32][36]. - The PCB specialized equipment market is expected to grow from $3.306 billion in 2020 to $4.111 billion in 2024, with a CAGR of 5.60% in China [32][34]. - Key players in the equipment sector include Dazhu CNC and Chip Quik, which are well-positioned to capitalize on the increasing demand for advanced PCB manufacturing [36][40]. Group 4: Solid-State Batteries - The solid-state battery industry is accelerating towards commercialization, with major manufacturers like CATL and Zhongxin Innovation targeting 2027 for small-scale production [9][10]. - The global solid-state battery equipment market is projected to reach ¥107.94 billion by 2030, indicating a significant capital expenditure cycle ahead [9][10]. - Companies such as Lead Intelligent and Hai Moxing are recommended for their potential to benefit from this new capital expenditure cycle [9][10]. Group 5: Controlled Nuclear Fusion - Controlled nuclear fusion is transitioning from experimental phases to industrialization, with significant advancements in research and increased capital investment driving the industry forward [9][10]. - The report suggests focusing on companies involved in nuclear fusion projects, such as Hangyang Co. and Shanghai Electric, which are positioned to gain from this emerging sector [9][10]. - The demand for energy solutions is expected to grow, making nuclear fusion a critical area for investment as it promises to provide sustainable energy sources [9][10]. Group 6: Engineering Machinery - The domestic engineering machinery market is recovering, with excavator sales showing a positive trend, while overseas demand is also increasing due to factors like housing construction and manufacturing sector recovery [6][9]. - Major projects in China, such as the Yaxi Water Conservancy Project and the Xinjiang-Tibet Railway, are expected to boost domestic machinery demand [6][9]. - Key companies in this sector include Sany Heavy Industry, XCMG, and Zoomlion, which are anticipated to benefit from both domestic recovery and international expansion [6][9].

Core Points - Sany Heavy Industry's stock price closed at HKD 20.64, down 2.457%, marking a new low since its listing [1] - The company was listed on the Hong Kong Stock Exchange on October 28, 2025, with an initial offering price of HKD 21.30 [1] - The total number of shares issued was 631,598,800, with net proceeds amounting to HKD 13,307.3 million after deducting estimated listing expenses [1] Group 1 - Sany Heavy Industry's stock hit a record low of HKD 20.50 during trading [1] - The company had a total offering of 631,598,800 shares, including 58,042,600 shares for public offering [1] - The exclusive sponsor and global coordinator for the listing was CITIC Securities, with other major underwriters including CICC and China International Capital Corporation [1] Group 2 - Key cornerstone investors include Temasek, UBS AM Singapore, and BlackRock among others [2] - The involvement of various asset management firms indicates strong institutional interest in Sany Heavy Industry [2]

Overall Trends - The growth of overseas revenue for A-share listed companies (excluding financials and "three barrels of oil") is expected to continue, with a projected increase of 10.1% in 2024, significantly outpacing the overall revenue growth of -0.8% [2][6] - The contribution of overseas revenue to overall profits is increasing, with the gross profit margin from overseas operations rising from 23.6% in 2021 to 29.5% in 2024, indicating a shift from scale expansion to optimizing profit structures [2][6] Engineering Machinery - Global demand is showing structural differentiation, with high demand for infrastructure and mining in Africa and Latin America, while the demand in Europe and the US remains stable. Companies with competitive products in overseas mining scenarios are recommended [2][17] Power Equipment - Focus on three high-growth segments: offshore wind components benefiting from European recovery, SST solutions for global AI computing upgrades, and energy storage systems addressing North American grid bottlenecks [2][20] Automotive - The automotive industry is shifting from vehicle exports to localized production overseas, with Southeast Asia becoming a key hub. Companies like BYD and Geely are accelerating their global presence through local manufacturing [2][21][22] Home Appliances - Leading companies are leveraging their global brand matrix and localized supply chains to establish strong barriers. In segments like robotic vacuums, domestic brands are competing directly with international brands through continuous innovation [2][23] Light Industry Manufacturing - The industry is transitioning from manufacturing efficiency to localized operations overseas. Leading companies are relocating production to avoid trade risks and are moving from OEM models to higher-margin proprietary brands [2][25] Basic Chemicals - Companies are engaging in both passive and active overseas expansion. Those with overseas production bases can ensure export channels, while active expansion aims to secure resources and broaden customer bases [2][26] Non-ferrous Metals - Domestic leading mining companies have been acquiring and operating key metal resources globally, which will contribute significantly to production and profit during industry upturns [2][29] Building Materials - Rapid urbanization and industrialization in emerging markets like Central Asia and Southeast Asia are creating substantial local demand for building materials, with local supply gaps presenting opportunities for Chinese companies [2][31] Textiles and Apparel - Chinese manufacturers are forming deep supply chain partnerships with global brands, and leading textile companies are expanding overseas to meet local procurement demands [2][33] Pharmaceuticals - The overseas commercialization of innovative drugs is entering a realization phase, with several products gaining approval in the US and significant sales growth reported [2][35] Computers - China's embedded software has a global comparative advantage, and companies successfully entering overseas markets can benefit from higher software pricing and a more favorable position in the global value chain [2][37]

Core Insights - The global mining equipment market is projected to grow to 736.8 billion yuan in 2024, with excavating equipment accounting for 49.14%, transportation equipment for 30.72%, and auxiliary machinery for 20.14% [4] - By 2025, the market size is expected to increase to 775.9 billion yuan, with excavating equipment at 48.84%, transportation equipment at 31.14%, and auxiliary machinery at 20.02% [4] - The mining equipment industry is crucial for the extraction and processing of solid raw materials and fuels, serving key industrial sectors such as metallurgy, coal, construction, and chemicals [3][4] Market Size and Growth - The global mining equipment market is anticipated to reach 736.8 billion yuan in 2024 and 775.9 billion yuan in 2025 [4] - In 2024, the North American mining equipment market is projected to be 189.4 billion yuan, Europe at 145.7 billion yuan, and Asia at 289.4 billion yuan, with China accounting for 16.69% [4] - By 2025, North America is expected to reach 197.3 billion yuan, Europe 151.7 billion yuan, and Asia 306.8 billion yuan, with China's share slightly increasing to 16.72% [4][5] Industry Structure - The mining equipment industry can be categorized into three main segments: excavating equipment, transportation equipment, and auxiliary machinery [3][4] - The upstream supply chain includes raw materials like steel, copper, and aluminum, as well as core components such as hydraulic pumps and precision transmission devices [5] - The downstream clients include coal mining companies and various metal mining sectors [5] Competitive Landscape - The global mining equipment manufacturing industry is experiencing significant changes, with the top 50 manufacturers expected to generate a total sales revenue of 76.655 billion USD in 2025, a 4% decrease from the previous year [8] - Caterpillar leads the market with a sales revenue of 12.389 billion USD, followed by Komatsu at 12.204 billion USD, while Chinese companies like TianDi Technology and Zhengzhou Coal Mining Machinery Group rank 6th and 7th respectively [8] - The market concentration is high, with the top five companies accounting for 55% of total sales, and the top twenty for 88.29% [8] Industry Trends - The mining equipment market is expected to continue growing due to increased global mining investments and technological advancements [8] - The industry is undergoing a technological revolution, with a focus on smart and green mining solutions [8] - The Chinese mining equipment sector is entering a golden era, driven by significant market demand and ongoing R&D investments [9]

November 25, 2025 08:34 AM GMT Sany Heavy Industry Co., Ltd. | Asia Pacific Focusing on Overseas Markets in 2026 We hosted a call with Sany, and management expects accelerated overseas sales growth in 2026, especially in Europe, North America and Africa. In China, non excavator sales will likely outgrow excavator in 2026, with more demand from mega infra projects in 2027-28. Key Takeaways We expect Sany to maintain its leadership in the domestic upcycle and achieve sustained overseas market share gains in t ...

Core Insights - SANY Heavy Truck has provided free new vehicles to 28 seed users from its fourth batch, celebrating a seven-year journey since the launch of its first batch of trucks in 2018 [1] - The company has successfully transitioned from traditional fuel trucks to electric heavy trucks, achieving a four-year consecutive sales championship in the new energy heavy truck sector, with sales expected to reach a scale of 10 billion [1] - The SANY Intelligent Connected Heavy Truck 5G factory has been recognized as a national-level model for digital transformation in manufacturing, covering an area of 200,000 square meters [2] Group 1 - SANY Heavy Truck's chairman, Liang Linhe, expressed gratitude to the first 500 truck users who helped realize the company's vision, promising to replace their trucks when annual sales reached 100,000 units [1] - The company has introduced a range of products including electric heavy trucks, electric light trucks, hydrogen energy heavy trucks, smart charging stations, and integrated hydrogen production and refueling stations [1] - The SANY Intelligent Connected Heavy Truck factory has been included in the "2025 5G Factory Directory" published by the Ministry of Industry and Information Technology, highlighting its status as a leader in the new energy heavy truck market [1][2] Group 2 - The SANY Intelligent Connected Heavy Truck Industrial Park is the first fully digital and intelligent industrial park of SANY Group, aiming to create a world-class model for "smart manufacturing" [2] - The park has been recognized as a benchmark project for digital transformation in manufacturing, contributing to the acceleration of the digital transformation of the manufacturing industry in Hunan [2]

Core Insights - SANY Group's subsidiary, Hunan Xingbida Network Technology Co., Ltd., has launched an initiative inviting the fourth batch of SANY heavy truck owners to "come home," offering free vehicle replacements to 28 seed users, marking the largest scale of free replacements in the company's history [1] - The chairman of SANY Heavy Truck, Liang Linhe, expressed gratitude towards the 500 truck drivers who contributed to the company's market success, promising free upgrades to the latest model for the first batch of owners when annual sales reach 100,000 units [1] - Truck owners shared their experiences, highlighting their journey from using SANY fuel trucks to owning multiple SANY electric trucks, reflecting the company's growth and the trust built over time [1] Company Initiatives - The event took place at the Changsha Intelligent Heavy Truck Industrial Park, showcasing SANY's commitment to intelligent manufacturing and the transition towards electrification [1] - The initiative emphasizes the company's philosophy of "keeping promises and building trust," reinforcing customer loyalty and engagement [1] Market Impact - The event signifies SANY Heavy Truck's strategic move to strengthen relationships with existing customers while promoting its advancements in electric vehicle technology [1] - The company's focus on customer satisfaction and innovative practices positions it favorably within the competitive heavy truck market [1]