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>SANYI targets to achieve revenue of RMB50bn and gross margin of 24% in 2027E, implying a revenue CAGR of 32% (2025E-27E) and 1.6ppt gross margin expansion from 2024.</li><li>SANYI is confident of achieving a 20% CAGR for overseas mining equipment segment over the coming years, driven by the strong demand for mining trucks.</li><li>Besides, coal mining equipment is expected to see recovery in 2H25E. This, together with the solid port machinery as well as improving solar and oil &amp; gas profitability, should enhance investor confidence that SANYI is about to bottom out and set for a recovery.</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 targets to achieve revenue of RMB50bn and gross margin of 24% in 2027E, implying a revenue CAGR of 32% (2025E-27E) and 1.6ppt gross margin expansion from 2024.SANYI is confident of achieving a 20% CAGR for overseas mining equipment segment over the coming years, driven by the strong demand for mining trucks.Besides, coal mining equipment is expected to see recovery in 2H25E. This, together with the solid port machinery as well as improving solar and oil &amp; gas profitability, should enhance investor confidence that SANYI is about to bottom out and set for a recovery.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) - Set for a Recovery

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Macroeconomics

<ul>
<li>China will roll out its 2026 - 2030 five-year plan this month, which outline the economic and social roadmap until the end of the decade.  </li>
<li>Historically the five-year plans have been a roadmap for investors to look for tailwinds for economic sector performance.  We believe the high-tech industries will remain the main focus for investment.</li>
<li>Exporters of high-end equipment and machinery will continue to benefit with the consumption sector being a focus for international investors.</li>
</ul>


China will roll out its 2026 - 2030 five-year plan this month, which outline the economic and social roadmap until the end of the decade.  
Historically the five-year plans have been a roadmap for investors to look for tailwinds for economic sector performance.  We believe the high-tech industries will remain the main focus for investment.
Exporters of high-end equipment and machinery will continue to benefit with the consumption sector being a focus for international investors.


EMERGING THEMES: China's Next 5 Year Plan

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>While 1H25 results are upcoming, the market's focus will start to move to the 2H25 earnings. There are five stocks whose earnings momentum will accelerate HoH. </li>
<li>
<a href="https://www.smartkarma.com/entities/sany-heavy-equipment-intl" target="_blank" data-smartkarma-citation="entities:11104:1" rel="noopener">Sany Heavy Equipment (631 HK)</a>, <a href="https://www.smartkarma.com/entities/shanghai-electric-group-company-limited-d542164d-4d5a-4ce0-b33e-5fe6bc34722c" target="_blank" data-smartkarma-citation="entities:8777:1" rel="noopener">Shanghai Electric Group Company (2727 HK)</a>, and <a href="https://www.smartkarma.com/entities/shenzhen-international-holdings-limited" target="_blank" data-smartkarma-citation="entities:9:1" rel="noopener">Shenzhen International (152 HK)</a> are having the best YTD performance. Still, there is more upside.</li>
<li>
<a href="https://www.smartkarma.com/entities/china-tourism-group-duty-free" target="_blank" data-smartkarma-citation="entities:36229:1" rel="noopener">China Tourism Group Duty Free (1880 HK)</a> and <a href="https://www.smartkarma.com/entities/cimc-enric-holdings-ltd" target="_blank" data-smartkarma-citation="entities:47:1" rel="noopener">CIMC Enric Holdings (3899 HK)</a> are the laggards YTD, but a stronger earnings outlook should drive a pick-up in 2H25.</li>
</ul>


While 1H25 results are upcoming, the market's focus will start to move to the 2H25 earnings. There are five stocks whose earnings momentum will accelerate HoH. 

Sany Heavy Equipment (631 HK), Shanghai Electric Group Company (2727 HK), and Shenzhen International (152 HK) are having the best YTD performance. Still, there is more upside.

China Tourism Group Duty Free (1880 HK) and CIMC Enric Holdings (3899 HK) are the laggards YTD, but a stronger earnings outlook should drive a pick-up in 2H25.


China Strategy: Interesting Stock Picks for 2H25

<ul>
<li>Industry sales of wheel loaders and excavators surged 16.5% and 27.2% in 2M25. For Feb alone, the growth rates are even more impressive at 34.4% and 52.8%, respectively.</li>
<li>Post-CNY, the utilisation hours and rates of construction machinery rose 70.3% YoY and 12.3pp. Market share gain in developing countries will drive exports.</li>
<li>Government supportive policies announced in NPC will provide support to demand. Current consensus forecasts for profit decline in FY25 are disconnected from industry data.</li>
</ul>


Industry sales of wheel loaders and excavators surged 16.5% and 27.2% in 2M25. For Feb alone, the growth rates are even more impressive at 34.4% and 52.8%, respectively.
Post-CNY, the utilisation hours and rates of construction machinery rose 70.3% YoY and 12.3pp. Market share gain in developing countries will drive exports.
Government supportive policies announced in NPC will provide support to demand. Current consensus forecasts for profit decline in FY25 are disconnected from industry data.


Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/pony-ai-inc" target="_blank" data-smartkarma-citation="entities:44035:1" rel="noopener">Pony AI (PONY US)</a> raised around US$260m in its upsized US ADR listing in Nov 2024. The lockup on its pre-IPO investors is set to expire soon.</li>
<li>As per Frost &amp; Sullivan, Pony AI was among the first companies in China to obtain licenses to operate fully driverless robotaxis in all four Tier-1 cities in China.</li>
<li>In this note, we will talk about the lockup dynamics and possible placement.</li>
</ul>



Pony AI (PONY US) raised around US$260m in its upsized US ADR listing in Nov 2024. The lockup on its pre-IPO investors is set to expire soon.
As per Frost &amp; Sullivan, Pony AI was among the first companies in China to obtain licenses to operate fully driverless robotaxis in all four Tier-1 cities in China.
In this note, we will talk about the lockup dynamics and possible placement.


Pony AI IPO Lockup - US$4.3bn Lockup Release with Stock at 69x EV/Sales

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) - Set for a Recovery

SANYI targets to achieve revenue of RMB50bn and gross margin of 24% in 2027E, implying a revenue CAGR of 32% (2025E-27E) and 1.6ppt gross margin...

CMB International

EMERGING THEMES: China's Next 5 Year Plan

China will roll out its 2026 - 2030 five-year plan this month, outlining the economic and social roadmap until the end of the decade.Historically...

David Mudd

China Strategy: Interesting Stock Picks for 2H25

Market focus shifting to 2H25 earnings, with five stocks expected to see earnings momentum acceleration, including Sany Intl, Shanghai Electric,...

Osbert Tang, CFA

Lonking (3339 HK): Boom, Boom, Boom

Sany Intl's net profit grew 23.2% in 1Q25, suggesting good momentum for the construction and heavy machinery demand. CCMA data also indicated that...

Osbert Tang, CFA

Pony AI IPO Lockup - US$4.3bn Lockup Release with Stock at 69x EV/Sales

Pony AI (PONY US) raised around US$260m in its upsized US ADR listing in Nov 2024. The lockup on its pre-IPO investors is set to expire soon.

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

SANY International (631 HK) - Set for a Recovery

SANYI targets to achieve revenue of RMB50bn and gross margin of 24% in 2027E, implying a revenue CAGR of 32% (2025E-27E) and 1.6ppt gross margin...

CMB International

EMERGING THEMES: China's Next 5 Year Plan

China will roll out its 2026 - 2030 five-year plan this month, outlining the economic and social roadmap until the end of the decade.Historically...

David Mudd

China Strategy: Interesting Stock Picks for 2H25

​Market focus shifting to 2H25 earnings, with five stocks expected to see earnings momentum acceleration, including Sany Intl, Shanghai Electric,...

Osbert Tang, CFA

Lonking (3339 HK): Boom, Boom, Boom

Sany Intl's net profit grew 23.2% in 1Q25, suggesting good momentum for the construction and heavy machinery demand. CCMA data also indicated that...

Osbert Tang, CFA

Pony AI IPO Lockup - US$4.3bn Lockup Release with Stock at 69x EV/Sales

Pony AI (PONY US) raised around US$260m in its upsized US ADR listing in Nov 2024. The lockup on its pre-IPO investors is set to expire soon.

Sumeet Singh

Market focus shifting to 2H25 earnings, with five stocks expected to see earnings momentum acceleration, including Sany Intl, Shanghai Electric,...