SANY(SH:600031) HTSC·2025-08-25 06:52Investment Rating - The report maintains a "Buy" rating for SANY Heavy Industry [6] Core Views - SANY Heavy Industry's profitability continues to improve, with H1 2025 total revenue reaching RMB 44.78 billion, a year-on-year increase of 14.64%, and net profit attributable to shareholders of RMB 5.216 billion, up 46.00% year-on-year [1][2] - The company is expected to benefit from the recovery of the domestic construction machinery industry and the ongoing global expansion strategy, leading to sustained high growth in performance [1][3] Financial Performance Summary - In H1 2025, the net profit margin was 11.65%, an increase of 2.50 percentage points year-on-year, and the gross profit margin was 27.44%, up 0.74 percentage points year-on-year [2] - Q2 2025 saw total revenue of RMB 23.603 billion, a year-on-year increase of 11.18% and a quarter-on-quarter increase of 11.46% [1][2] - The company achieved a significant increase in net profit in Q2 2025, reaching RMB 2.745 billion, which is a 37.76% increase year-on-year [1][2] Sales and Market Expansion Summary - SANY's international sales revenue reached RMB 26.302 billion in H1 2025, representing a year-on-year growth of 11.72%, with overseas sales accounting for 60.26% of total revenue [3] - The Asia-Pacific region saw a revenue increase of 16.3%, while Africa experienced a remarkable growth of 40.48% [3] - The company launched over 80 new products in overseas markets, expanding its product coverage [3] Profit Forecast and Valuation - The report maintains previous profit forecasts, estimating net profits for 2025-2027 at RMB 8.944 billion, RMB 11.978 billion, and RMB 15.600 billion, respectively [4] - The target price is set at RMB 26.50, based on a 25x PE ratio for 2025, reflecting the company's leadership in the industry and potential benefits from the domestic construction machinery cycle [4][6]