SANY(SH:600031) Huachuang Securities·2025-05-04 13:05Investment Rating - The report maintains a "Strong Buy" rating for SANY Heavy Industry (600031) [1] Core Views - The company reported a total revenue of 21.18 billion yuan in Q1 2025, representing a year-on-year increase of 18.77%. The net profit attributable to shareholders reached 2.47 billion yuan, up 56.40% year-on-year, while the net profit excluding non-recurring items was 2.40 billion yuan, reflecting a 78.54% year-on-year growth [1] - The company is benefiting from a recovery in the domestic construction machinery market, with excavator sales increasing by 22.8% year-on-year in Q1 2025. SANY continues to hold a leading position in the excavator market, having been the top seller for 14 consecutive years [7] - The report highlights the company's focus on cost control and efficiency improvements, which have led to a significant increase in profit margins. The gross profit margin and net profit margin were reported at 26.84% and 11.89%, respectively, with net profit margin showing a year-on-year increase of 2.70 percentage points after adjustments [7] Financial Summary - For the years 2025 to 2027, the projected total revenues are 90.36 billion yuan, 108.05 billion yuan, and 129.65 billion yuan, with year-on-year growth rates of 15.3%, 19.6%, and 20.0% respectively. The net profit attributable to shareholders is expected to be 8.68 billion yuan, 10.81 billion yuan, and 13.59 billion yuan, with growth rates of 45.3%, 24.5%, and 25.7% respectively [3][7] - The earnings per share (EPS) are projected to be 1.02 yuan, 1.28 yuan, and 1.60 yuan for the years 2025, 2026, and 2027, respectively [3][7] - The report sets a target price of 25.6 yuan for the stock, based on a price-to-earnings (P/E) ratio of 25 for 2025 [3][7]