SANY(SH:600031) BambooWorks·2025-10-28 02:18Core Viewpoint - Sany Heavy Industry's IPO in Hong Kong is expected to raise approximately $1.5 billion, making it the third-largest IPO in Hong Kong this year [1][3]. Group 1: IPO Details - Sany Heavy Industry plans to issue about 580 million shares at a price range of HKD 20.30 to 21.30, aiming for a total fundraising of approximately HKD 12 billion (around $1.54 billion) [3]. - This IPO is positioned as the third-largest in Hong Kong this year, following CATL's $4.5 billion and Zijin Mining's $3.2 billion offerings [3]. Group 2: Valuation Concerns - The valuation of Sany Heavy Industry is a critical issue, as Hong Kong investors tend to differentiate between technology and traditional companies, with technology firms often receiving a premium [5][6]. - The company's A-share price-to-earnings (P/E) ratio is approximately 25 times, while its Hong Kong listing is expected to have a P/E ratio of 27 times, indicating a slight premium [6]. Group 3: International Expansion - Sany Heavy Industry's international sales have surpassed 50% of total revenue, with overseas sales contributing 57.4% in the first four months of this year [7]. - The company has established 16 international manufacturing bases, with significant production facilities in the U.S., Germany, and Indonesia, reflecting its commitment to global expansion [7]. Group 4: Financial Performance - The company reported a 15% year-on-year increase in revenue for the first half of the year, rising from RMB 39.1 billion to RMB 44.8 billion (approximately $6.3 billion) [6]. - Sany Heavy Industry's net profit increased by 45% to RMB 5.29 billion in the first half of the year, and its debt-to-asset ratio decreased from 58.4% in 2022 to 50.6% [8].