2025-11-24 01:46Investment Rating - The report recommends a "Buy" rating for Sany Heavy Industry with a target price of Rmb28.00, indicating an expected share price return of 35.5% and an expected total return of 37.9% [7]. Core Insights - Sany Heavy Industry is shifting its focus from aggressive pricing strategies to "quality growth," aiming for over 10% year-on-year revenue growth in China, driven by electrification and demand from non-property sectors [1][3]. - The company targets approximately 15% year-on-year revenue growth overseas, particularly in Africa and ASEAN, while utilizing its Indonesian facility to navigate geopolitical and tariff challenges in the US market [4]. - Mining equipment is identified as a key product area, with significant aftermarket opportunities, as it represents about 70% of lifecycle spending [5]. Summary by Sections Domestic Market Performance - The construction demand in China remains lukewarm, primarily due to weaker demand from property and infrastructure sectors. However, Sany expects to achieve over 10% year-on-year revenue growth in 2025-26 through electrification and increased crane demand from wind and petrochemical sectors [3]. Overseas Strategy - Sany aims for around 15% year-on-year revenue growth in international markets, with a positive outlook for demand in Africa and ASEAN. The company plans to leverage its Indonesian facility to ship excavators to the US, circumventing geopolitical and tariff issues [4]. Focus on Mining Equipment - The initial investment in mining equipment is only about 30% of total lifecycle spending, with aftermarket services accounting for approximately 70%. Sany's revenue from mining equipment exceeding 100 tons is projected to reach Rmb2 billion in 2025, with targets of Rmb3 billion in 2026 and Rmb6 billion by 2028 [5].