Wayne Fung, an analyst from CMB International Securities, maintained the Buy rating on Sany Heavy Equipment International Holdings Co (SNYYF – Research Report). The associated price target is HK$8.20.
Wayne Fung has given his Buy rating due to a combination of factors that indicate a positive outlook for Sany Heavy Equipment International Holdings Co. The company is targeting significant revenue growth, with a projected revenue of RMB50 billion and a gross margin of 24% by 2027, suggesting a strong compound annual growth rate. This growth is expected to be driven by the overseas mining equipment segment, which is anticipated to grow at a 20% CAGR due to strong demand for mining trucks.
Additionally, the company is poised for recovery in its coal mining equipment segment by the second half of 2025, alongside solid performance in port machinery and improving profitability in solar and oil & gas sectors. Despite a decline in 2024 profits due to one-off impairments, the adjusted net profit shows resilience. Furthermore, the company’s strategic focus on lithium energy and cost efficiencies in energy storage and power batteries positions it well for substantial revenue growth, reinforcing investor confidence in its recovery trajectory.