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.

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

Equity Bottom-Up

<ul><li>SANY Heavy (SANY)’s net profit in 1H25 grew 46% YoY to RMB5.2bn (2Q25: +38% YoY), which is a strong set of results with major machinery products (except concrete) saw strong growth.</li><li>For the first time since 2017, SANY proposed interim dividend of RMB0.31/shr, implying a 50% pay-out ratio (similar to the full year in 2024).</li><li>We maintain our positive stance on SANY due to the replacement-driven upcycle of excavators, as well as further improvement of non-road machinery.</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.

SANY Heavy (SANY)’s net profit in 1H25 grew 46% YoY to RMB5.2bn (2Q25: +38% YoY), which is a strong set of results with major machinery products (except concrete) saw strong growth.For the first time since 2017, SANY proposed interim dividend of RMB0.31/shr, implying a 50% pay-out ratio (similar to the full year in 2024).We maintain our positive stance on SANY due to the replacement-driven upcycle of excavators, as well as further improvement of non-road machinery.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 Heavy (600031 CH) - 2Q25 Profit +38% YoY with Interim Div; Solid Upcycle

<ul><li>We upgrade SANY Heavy to BUY after keeping our HOLD rating for &gt;30 months.</li><li>We are turning positive as we expect an earnings up-cycle in 2025E26E, driven by: (1) a speed-up of overseas growth across all types of machinery driven by emerging markets such as the Middle East and Africa (for details, please see our report “2025 Outlook: Emerging markets the key growth driver; China market to be stabilized” published on 9 Dec), (2) further improvement of domestic excavator demand on the back of the Chinese government’s steppedup policies and the replacement cycle, (3) effective cost control and capex discipline.</li><li>We revise up our earnings forecast by 14-21% in 2024E-26E, after incorporating our new industry assumptions. </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 upgrade SANY Heavy to BUY after keeping our HOLD rating for &gt;30 months.We are turning positive as we expect an earnings up-cycle in 2025E26E, driven by: (1) a speed-up of overseas growth across all types of machinery driven by emerging markets such as the Middle East and Africa (for details, please see our report “2025 Outlook: Emerging markets the key growth driver; China market to be stabilized” published on 9 Dec), (2) further improvement of domestic excavator demand on the back of the Chinese government’s steppedup policies and the replacement cycle, (3) effective cost control and capex discipline.We revise up our earnings forecast by 14-21% in 2024E-26E, after incorporating our new industry assumptions. 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 Heavy (600031 CH) - Riding on the Up-Cycle of Excavator + Overseas Expansion

<ul><li>During the post-results call, SANY Heavy (SANY) remained positive on the overseas outlook despite the recent weakness of excavators in Europe and the US.</li><li>SANY expects the sales in the US to see potential stabilisation in 2025E, while the growth in emerging countries will continue to be strong.</li><li>For 2H24E, SANY expects China’s sales to stabilize (-12% in 1H24) while overseas sales growth will accelerate (+4.8% in 1H24). </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.

During the post-results call, SANY Heavy (SANY) remained positive on the overseas outlook despite the recent weakness of excavators in Europe and the US.SANY expects the sales in the US to see potential stabilisation in 2025E, while the growth in emerging countries will continue to be strong.For 2H24E, SANY expects China’s sales to stabilize (-12% in 1H24) while overseas sales growth will accelerate (+4.8% in 1H24). 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 Heavy (600031 CH) - Expect a Better 2H24E but Consensus Remains High

<ul>
<li>SANY Heavy (SANY)’s net profit in 2023 came in at RMB4.53bn (+6% YoY), which is 12% below both our and consensus estimates.</li>
<li>In addition, net profit in 1Q24 only grew 5% YoY to RMB1.58bn due to a lack of revenue growth (-1% YoY).</li>
<li>We are still concerned about further slowdown of export this year, given the weakness in the overseas demand (in particular in Europe). </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.


SANY Heavy (SANY)’s net profit in 2023 came in at RMB4.53bn (+6% YoY), which is 12% below both our and consensus estimates.
In addition, net profit in 1Q24 only grew 5% YoY to RMB1.58bn due to a lack of revenue growth (-1% YoY).
We are still concerned about further slowdown of export this year, given the weakness in the overseas demand (in particular in Europe). 

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 Heavy (600031 CH) - 2023 Net Profit a Miss; 1Q24 Still Weak; Stay on the Sidelines

China

SANY Heavy Industry Co., Ltd manufactures and markets construction and engineering machinery and related parts. The Company produces and sells concrete pumps, concrete pump vehicles, road rollers, pavers, and other related products. Sany Heavy Industry markets its products worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Sany Heavy Industry (600031 CH)

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

SANY Heavy (600031 CH) - 2Q25 Profit +38% YoY with Interim Div; Solid Upcycle

SANY Heavy (SANY)’s net profit in 1H25 grew 46% YoY to RMB5.2bn (2Q25: +38% YoY), which is a strong set of results with major machinery products...

CMB International

SANY Heavy (600031 CH) - Riding on the Up-Cycle of Excavator + Overseas Expansion

We upgrade SANY Heavy to BUY after keeping our HOLD rating for >30 months. We are turning positive as we expect an earnings up-cycle in 2025E26E

CMB International

SANY Heavy (600031 CH) - Expect a Better 2H24E but Consensus Remains High

During the post-results call, SANY Heavy (SANY) remained positive on the overseas outlook despite the recent weakness of excavators in Europe and...

CMB International

SANY Heavy (600031 CH) - 2023 Net Profit a Miss; 1Q24 Still Weak; Stay on the Sidelines

SANY Heavy (SANY)’s net profit in 2023 came in at RMB4.53bn (+6% YoY), which is 12% below both our and consensus estimates.

CMB International

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)