Core Viewpoint - SANY International (00631) expects a net profit of approximately RMB 1.234 billion to RMB 1.332 billion for the six months ending June 30, 2025, representing a 25% to 35% increase compared to the first half of 2024 [1] Group 1: Financial Performance - The anticipated increase in net profit is attributed to the implementation of globalization, digitalization, and low-carbon strategies, leading to significant revenue growth in large port machinery, oil and gas equipment, and overseas sales of mining trucks [1] - The acquisition of lithium energy business completed on July 22, 2024, is expected to provide a new source of revenue for the company [1] - Initiatives aimed at improving quality and efficiency, as well as cost reduction measures, have resulted in a notable increase in gross profit margins for tunneling machines, small port machinery, and oil and gas equipment products [1]

Core Viewpoint - SANY International (00631) expects a net profit of approximately RMB 1.234 billion to RMB 1.332 billion for the six months ending June 30, 2025, representing an increase of 25% to 35% compared to the first half of 2024 [1] Group 1: Financial Performance - The anticipated increase in net profit is primarily attributed to the implementation of globalization, digitalization, and low-carbon strategies, which have significantly boosted revenue from large port machinery, oil and gas equipment, and overseas sales of mining trucks [1] - The completion of the acquisition of lithium energy business on July 22, 2024, has introduced new revenue streams for the company [1] - Initiatives aimed at improving quality and efficiency, as well as cost reduction measures, have led to a notable increase in gross profit margins for tunneling machines, small port machinery, and oil and gas equipment products [1]

Performance Review - Company reported 1Q25 financial data: revenue of 5.876 billion yuan, a year-on-year increase of 14.6%, gross profit of 1.428 billion yuan, a year-on-year increase of 11.8%, and net profit attributable to shareholders of 635 million yuan, a year-on-year increase of 23.2%, meeting expectations [1]. Development Trends Mining Equipment - Domestic demand remains resilient, with positive outlook for overseas expansion of mining trucks. Domestic coal prices are in a downward trend due to weak demand. Current demand for tunneling machines and wide-body trucks is strong, while hydraulic support prices are under intense competition. The company expects good growth for overseas wide-body trucks and large mining trucks, driven by product upgrades and reduced overall user costs, indicating significant long-term growth potential in large mining trucks and related aftermarket [1]. Logistics Equipment - Demand for port machinery is on the rise, with expansion of new products overseas. Starting in 2023, global demand for port equipment is recovering, with full orders for large port machinery and gradually strengthening order profitability. Exports of small port machinery products remain robust in Asia, Africa, and Latin America. Over the past three years, the company has aggressively expanded new products like telescopic forklifts in the European and American markets, currently producing in India to address tariff issues. The company is optimistic about the trend towards electrification of small port machinery and the continued expansion of new products overseas [1]. Oil and Gas Equipment - Demand and profitability are expected to recover. In 2024, revenue and profitability declined due to major clients' cost-cutting measures. The company anticipates marginal recovery in industry demand in 2025, with strengthened internal management to restore market share [2]. New Industries - Focus on cost reduction and efficiency improvement, expanding overseas application scenarios. In 2024, the company will enhance management reforms for new industries, readjusting businesses with intense competition and limited profitability. It is expected that operating losses in new industries will significantly narrow in 2025, optimizing the efficiency and return rate of existing assets [2]. Profit Forecast and Valuation - The company maintains the 2025 EPS forecast at 0.70 yuan and introduces the 2026 EPS forecast at 0.81 yuan. The current stock price corresponds to 7.9x/6.7x P/E for 2025/2026. Considering the improvement prospects in new industry profitability, the target price is raised by 25% to 7.10 HKD, corresponding to 9.5x/8.1x P/E for 2025/2026, indicating a 21% upside potential, maintaining an outperform rating [2].

Core Viewpoint - CICC maintains the EPS forecast for SANY International (00631) at 0.70 HKD for 2025 and introduces a new EPS forecast of 0.81 HKD for 2026, raising the target price by 25% to 7.10 HKD, indicating a 21% upside potential based on improved profitability in new industries [1] Financial Performance - The company reported Q1 2025 financial data with revenue of 5.876 billion HKD, a year-on-year increase of 14.6%, gross profit of 1.428 billion HKD, up 11.8%, and net profit attributable to shareholders of 635 million HKD, reflecting a 23.2% year-on-year growth, aligning with CICC's expectations [2] Mining Equipment - Domestic demand remains resilient, with strong demand for tunneling machines and wide-body trucks, despite weak coal prices. The company is expected to see good growth in overseas wide-body trucks and large mining trucks, supported by product upgrades and reduced overall user costs, indicating significant long-term growth potential [3] Logistics Equipment - Global demand for port equipment is recovering, with a full order book for large port machines and improving order profitability. The company has successfully expanded its small port machine exports in Asia, Africa, and Latin America, and has introduced new products like telescopic forklifts in the European and American markets, produced in India to mitigate tariff issues. The trend towards electrification of small port machines is viewed positively [4] Oil and Gas Equipment - In 2024, revenue and profitability are expected to decline due to cost-cutting measures from major clients. However, a marginal recovery in industry demand is anticipated in 2025, with the company focusing on internal management improvements to regain market share [5] New Industries - In 2024, the company is enhancing management reforms in new industries to improve efficiency and reduce costs. A significant narrowing of operational losses in new industries is expected in 2025, along with better utilization and return rates of existing assets [6]