China Specialist, Auto and Industrial Specialist

Victoria Li

20 years experience as sell side analyst focusing on China's Industrial and Auto sectors

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Equity Bottom-Up

Sany's share price is up 43% from its  March lows during China's Covid-19 lockdown. Nonetheless, we still see upside from here, driven by market consensus upgrades and valuation re-rating. Share price momentum could come with 1H 2020E financial results at the earliest.In 1H2020E, Sany Heavy's excavator sales increased by 24.2% yoy, with 25.5% of market share.  With new infrastructure projects starts continuing to accelerate, China's excavator sales growth could go above 30% yoy in 2020E. As a result, we estimate Sany's earnings growth in 2020E could be above 25% yoy, vs. 18.9% growth in Bloomberg consensus estimates.Current valuation stands at 13x P/E 2020E based on Bloomberg consensus, vs. its global peers' average of 15x. We believe Sany's valuation multiple still has upside when market expectation on its earnings raised.

Sany's share price is up 43% from its  March lows during China's Covid-19 lockdown. Nonetheless, we still see upside from here, driven by market consensus upgrades and valuation re-rating. Share price momentum could come with 1H 2020E financial results at the earliest.In 1H2020E, Sany Heavy's excavator sales increased by 24.2% yoy, with 25.5% of market share.  With new infrastructure projects starts continuing to accelerate, China's excavator sales growth could go above 30% yoy in 2020E. As a result, we estimate Sany's earnings growth in 2020E could be above 25% yoy, vs. 18.9% growth in Bloomberg consensus estimates.Current valuation stands at 13x P/E 2020E based on Bloomberg consensus, vs. its global peers' average of 15x. We believe Sany's valuation multiple still has upside when market expectation on its earnings raised.

三一重工（600031.CH） - 成長と市場シェアの掘り起こし

Sany Heavy Industry

三一重工（600031.CH） - 成長と市場シェアの掘り起こし