External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>We, together with &gt;30 investors, joined SANYI’s plant visit tour in Zhuhai’s port machinery production base yesterday (25 July).</li><li>Key positives: (1) SANYI is confident of achieving revenue growth of 100%/50% YoY in overseas port machinery in 2023E/24E; (2) revenue from telescopic forklift will potentially reach RMB1bn in 2023E and double in 2024E; (3) electrification of reach stackers &amp; empty container handlers is on a good track; (4) gross margin of large port machinery is improving.</li><li>The positive management tone reaffirms our positive stance on the structural growth outlook of SANYI. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We, together with &gt;30 investors, joined SANYI’s plant visit tour in Zhuhai’s port machinery production base yesterday (25 July).Key positives: (1) SANYI is confident of achieving revenue growth of 100%/50% YoY in overseas port machinery in 2023E/24E; (2) revenue from telescopic forklift will potentially reach RMB1bn in 2023E and double in 2024E; (3) electrification of reach stackers &amp; empty container handlers is on a good track; (4) gross margin of large port machinery is improving.The positive management tone reaffirms our positive stance on the structural growth outlook of SANYI. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

SANY International (631 HK) – Positive Takeaways from Zhuhai Plant Visit

Thematic (Sector/Industry)

<ul><li>According to the preliminary data from CME, China’s excavator sales dropped 26% YoY to ~13.2k units.</li><li>Sales in China remained weak with an estimated 49% YoY decline to 4.7k units in Jul, which is not a surprise given the lack of powerful stimulus policies.</li><li>Export, which had been strong since 2020, however, starts to see a loss of momentum. Export volume is expected to drop 2% YoY to 8.5k units in Jul, according to CME. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

According to the preliminary data from CME, China’s excavator sales dropped 26% YoY to ~13.2k units.Sales in China remained weak with an estimated 49% YoY decline to 4.7k units in Jul, which is not a surprise given the lack of powerful stimulus policies.Export, which had been strong since 2020, however, starts to see a loss of momentum. Export volume is expected to drop 2% YoY to 8.5k units in Jul, according to CME. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Construction Machinery – Export of Excavator Running Out of Steam

<ul><li>We project Li Auto’s net profit to rise 27% QoQ to RMB 1.2bn in 2Q23E. Profitability in FY24E could also beat expectation on greater economies of scale.</li><li>Apart from its products, we like the Company’s high self-discipline in costs and business expansion even as it is much more resourceful than before.</li><li>We project Li Auto’s 2Q23E revenue to more than triple YoY to RMB 27.9bn, as its sales volume beat guidance.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We project Li Auto’s net profit to rise 27% QoQ to RMB 1.2bn in 2Q23E. Profitability in FY24E could also beat expectation on greater economies of scale.Apart from its products, we like the Company’s high self-discipline in costs and business expansion even as it is much more resourceful than before.We project Li Auto’s 2Q23E revenue to more than triple YoY to RMB 27.9bn, as its sales volume beat guidance.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CMBI Research Focus List (July Edition) – Our best high conviction stock ideas

<ul><li>We visited SANYI’s headquarters and mining equipment smart factory in Shenyang, Liaoning last week.</li><li>Our discussion with the senior management and plant managers reaffirm our positive stance.</li><li>We continue to like SANYI’s strong commitment to deliver growth through strategical expansion in different segments and the continuous launch of new products. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We visited SANYI’s headquarters and mining equipment smart factory in Shenyang, Liaoning last week.Our discussion with the senior management and plant managers reaffirm our positive stance.We continue to like SANYI’s strong commitment to deliver growth through strategical expansion in different segments and the continuous launch of new products. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

SANY International (631 HK) – Firing on All Cylinders

<ul><li>SANYI announced yesterday (12 April) after market close that it plans to acquire SANY Petroleum Intelligent Equipment (三一石油智能装备) from the controlling shareholder.</li><li>This marks the expansion into oil &amp; gas fracturing equipment segment, which we think is positive given the expected increase in oilfield spending (in particular unconventional field) amid the tight supply of oil and the consideration of energy security by different countries.</li><li>The acquisition price of RMB2.98bn (all cash) implies only 7.7x 2022 P/E, lower than the 12.8x of Yantai Jereh (002353 CH) and SANYI’s current valuation (~11x).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

SANYI announced yesterday (12 April) after market close that it plans to acquire SANY Petroleum Intelligent Equipment (三一石油智能装备) from the controlling shareholder.This marks the expansion into oil &amp; gas fracturing equipment segment, which we think is positive given the expected increase in oilfield spending (in particular unconventional field) amid the tight supply of oil and the consideration of energy security by different countries.The acquisition price of RMB2.98bn (all cash) implies only 7.7x 2022 P/E, lower than the 12.8x of Yantai Jereh (002353 CH) and SANYI’s current valuation (~11x).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

SANY International (631 HK) – Acquisition of oil & gas frac equipment a positive move

China

Sany Heavy Equipment International Holdings Co Ltd. manufactures coal mining equipment, including roadheaders.

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Sany Heavy Equipment (631 HK)

SANY International (631 HK) – Positive Takeaways from Zhuhai Plant Visit

We, together with >30 investors, joined SANYI’s plant visit tour in Zhuhai’s port machinery production base yesterday (25 July).

CMB International

China Construction Machinery – Export of Excavator Running Out of Steam

Sales in China remained weak with an estimated 49% YoY decline to 4.7k units in Jul, which is not a surprise given the lack of powerful stimulus...

CMB International

CMBI Research Focus List (July Edition) – Our best high conviction stock ideas

We project Li Auto’s net profit to rise 27% QoQ to RMB 1.2bn in 2Q23E. Profitability in FY24E could also beat expectation on greater economies of...

CMB International

SANY International (631 HK) – Firing on All Cylinders

We continue to like SANYI’s strong commitment to deliver growth through strategical expansion in different segments and the continuous launch of...

CMB International

SANY International (631 HK) – Acquisition of oil & gas frac equipment a positive move

SANYI announced yesterday (12 April) after market close that it plans to acquire SANY Petroleum Intelligent Equipment (三一石油智能装备) from the...

CMB International

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