Ge Long Hui·2025-12-02 10:39Core Viewpoint - The mining excavator market is expected to be a key growth area, particularly in overseas and emerging markets, with SANY's earnings forecast revised upwards due to increased sales volume and finance income following its recent Hong Kong IPO [1][3]. Group 1: Market Outlook - Large-size mining excavators are identified as a significant growth area for 2026, driven by a replacement-driven upcycle and early-stage recovery in crane demand in China [1]. - SANY aims to increase annual mining excavator sales from RMB2 billion in 2025E to RMB6 billion in 2028E [2]. Group 2: Financial Performance - Following the Hong Kong IPO, SANY raised approximately HK$15 billion (around RMB13.7 billion), with a forecasted net cash of RMB25 billion by the end of 2025E [3]. - The target price for SANY-A has been revised to RMB27 from RMB24, reflecting an earnings upcycle with a target P/E of 24x [1]. Group 3: Strategic Initiatives - SANY plans to separate its mining excavator operations to enhance collaboration with its mining truck unit, aiming to expand its overseas mining equipment segment [2]. - More than half of the IPO proceeds will be allocated to global sales network and overseas capacity expansion [3].