SANY(SH:600031) Minsheng Securities·2024-09-10 04:00Investment Rating - The report maintains a "Recommended" rating for the company [2] Core Views - The company has shown strong sales growth in both domestic and overseas markets, with domestic small excavator sales increasing by 51% year-on-year and overseas small excavator sales up by 16% [2] - The company is benefiting from a recovery in the domestic construction machinery market, supported by the issuance of government bonds and the acceleration of equipment upgrades [2] - The company's global manufacturing expansion is expected to enhance its market share, with significant growth opportunities in emerging markets like Africa [2] - Progress in electrification and new energy products is notable, with over 80 new energy products launched in the first half of 2024 [2] Summary by Sections Sales Performance - In August 2024, domestic small excavator sales increased by 51%, medium excavators by 44%, and large excavators remained flat. Overseas, small excavator sales grew by 16%, medium by 32%, and large by 63 [2] - Sales in Africa reached 3.5 billion yuan, up over 60% year-on-year [2] Market Recovery - The domestic market is stabilizing due to the commencement of government bond projects and the push for equipment upgrades, leading to a recovery in excavator sales [2] - The report notes that aside from February, which saw a nearly 50% decline due to seasonal factors, excavator sales have shown year-on-year growth in other months [2] Global Expansion - The company has established a strong presence in Africa with 4 regional offices, 14 subsidiaries, and over 50 service points, achieving a localization rate of over 60% [2] - The global market share of the company is currently at 4.2%, indicating significant room for growth compared to industry leaders [2] Technological Advancements - The company has made strides in electrification, with 30 patents related to low-carbon technologies obtained in the first half of 2024 [2] - Major breakthroughs include securing a large order for 200 electric loaders in Indonesia and leading the industry in energy consumption performance for electric excavators [2] Financial Projections - The projected net profit for 2024-2026 is 6.586 billion, 8.067 billion, and 10.127 billion yuan, respectively, with corresponding PE ratios of 20x, 16x, and 13x [2] - Revenue is expected to grow from 79.25 billion yuan in 2024 to 102.81 billion yuan in 2026, reflecting a compound annual growth rate [2]