SANY(SH:600031) Xin Lang Cai Jing·2025-11-16 02:24Core Viewpoint - The company is experiencing continuous improvement in operational quality, with operating cash flow reaching a historical high, indicating potential valuation uplift driven by industry demand and global competitiveness [1]. Investment Highlights - The domestic engineering machinery sector is at the beginning of a cyclical improvement, with overseas markets expected to see structural enhancements. The company's strong product capabilities and global layout position it well for future demand resilience and competitiveness, leading to valuation increases. Projected EPS for 2025/2026/2027 are 0.96 CNY, 1.22 CNY, and 1.45 CNY respectively. A target price of 26.88 CNY is set based on a 28x PE for 2025, with a recommendation to accumulate [2]. Performance Growth - For the first three quarters of 2025, the company reported operating revenue of 66.104 billion CNY, a year-on-year increase of 13.27%, and a net profit attributable to shareholders of 7.136 billion CNY, up 46.58% year-on-year. In Q3 2025, revenue was 21.324 billion CNY, with a year-on-year growth of 10.48%, and net profit of 1.919 billion CNY, up 48.18% year-on-year. The gross profit margin and net profit margin for Q1-3 2025 were 27.62% and 11.01%, respectively, with slight year-on-year changes [3]. Operational Quality Improvement - The net operating cash flow for Q1-3 2025 was 14.547 billion CNY, a year-on-year increase of 17.55%. In Q3 2025, the net operating cash flow was 4.413 billion CNY, up 12.07% year-on-year. The company has effectively managed its expense ratios, with sales, management, R&D, and financial expense ratios showing positive trends [4]. International Market Expansion - In the first half of 2025, the company achieved overseas sales revenue of 26.302 billion CNY, a year-on-year increase of 11.72%, with overseas revenue accounting for 60.26% of total revenue. The gross margin for overseas main business improved to 31.18%, driven by price adjustments, product structure optimization, and cost reduction measures. The company launched over 30 new energy products, expanding its electric product matrix [4].