SANY(SH:600031) Xin Lang Cai Jing·2025-10-28 12:12Core Viewpoint - Sany Heavy Industry has officially listed on the Hong Kong Stock Exchange, raising approximately HKD 134.5 billion (around RMB 12.3 billion) through its IPO, marking its second listing after its debut on the Shanghai Stock Exchange in 2003 [1][2]. Company Overview - Sany Heavy Industry is a leading player in the engineering machinery sector, with products including concrete machinery, excavators, cranes, pile drivers, and road machinery. The company has achieved the highest cumulative sales of excavators globally for five consecutive years and ranks first in cumulative revenue for concrete machinery [5]. - The company plans to use the funds raised from the IPO to enhance its global sales and service network, increase brand awareness, expand overseas manufacturing capabilities, and optimize production efficiency [2][5]. Financial Performance - For the years 2022-2024, Sany Heavy Industry's projected revenues are RMB 808.39 billion, RMB 740.19 billion, and RMB 783.83 billion, with net profits of RMB 44.33 billion, RMB 46.06 billion, and RMB 60.9 billion respectively. The gross profit margins are expected to be 22.6%, 26.4%, and 26.7% [5]. - In the first half of this year, the company reported revenue of RMB 445.34 billion, a year-on-year increase of 14.96%, and a net profit of RMB 52.16 billion, up 46% year-on-year [5]. Market Context - The IPO coincides with a recovery in the domestic engineering machinery industry, which has been cyclical. The last upturn began in 2016 and ended in mid-2021, followed by a downturn until a gradual recovery began last year [6]. - The domestic demand for core products such as excavators and concrete machinery has increased, driven by long-term government bond issuance and policies for equipment upgrades [6][7]. Global Strategy - Sany Heavy Industry is advancing a strategy focused on globalization, digitalization, and low-carbon initiatives. According to a report, the company is the largest engineering machinery enterprise in China and the third largest globally based on cumulative revenue from core products from 2020 to 2024 [8]. - The company’s overseas revenue is projected to grow at a compound annual growth rate of 15.2% from 2022 to 2024, with overseas business accounting for over 60% of total revenue, which is higher than its peers [8]. Industry Outlook - The global engineering machinery market is expected to grow, with sales projected to reach USD 213.5 billion in 2024 and USD 296.1 billion by 2030. Key markets include North America, Asia-Pacific, Europe, and China [9]. - However, the industry faces challenges such as geopolitical factors affecting the business environment and uncertainties in global economic growth [9].