SANY(600031) 浙商证券·2025-03-09 08:23Investment Rating - The investment rating for SANY Heavy Industry is "Buy" (maintained) [5] Core Views - The report highlights that the overseas and domestic markets for the engineering machinery industry are experiencing upward resonance, positioning SANY Heavy Industry as one of the companies with the greatest earnings elasticity due to its significant share in the excavator market [1][2] - Despite market concerns regarding insufficient real estate demand and infrastructure funding, the report anticipates a recovery in the engineering machinery industry, with SANY benefiting from its high revenue share from excavators [2][5] - The company plans to list on the Hong Kong Stock Exchange, which is seen as a move to enhance its global strategy and improve governance transparency [2][3] Company Summary - SANY Heavy Industry's excavator revenue accounted for 39% of its total revenue in the first half of 2024, making it the second highest among domestic manufacturers [2] - The company reported a significant improvement in profitability, with a net profit of 49 billion yuan in 2024, representing a 20% year-on-year increase [5][10] - The international revenue for SANY reached 235 billion yuan in the first half of 2024, marking a 4.8% increase and accounting for 62% of total revenue [10] Industry Summary - The engineering machinery industry is showing signs of recovery, with a 53% year-on-year increase in excavator sales in February 2025 [3] - Domestic sales of excavators reached 11,640 units in February 2025, a 99% increase year-on-year, indicating a warming market [3] - The report suggests that the anticipated end of the Russia-Ukraine conflict could lead to increased overseas demand for engineering machinery, benefiting leading companies like SANY [3][5]