Strong Financial Performance and Growth Potential Drive Buy Rating for Sany Heavy Equipment International Holdings Co

Sany Heavy Equipment International Holdings Co (SNYYF – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Wayne Fung from CMB International Securities maintained a Buy rating on the stock and has a HK$8.20 price target.

Wayne Fung’s rating is based on a combination of factors that highlight Sany Heavy Equipment International Holdings Co’s strong financial performance and growth potential. The company’s net profit surged by 23% year-over-year in the first quarter of 2025, reaching RMB635 million, marking the first quarterly profit growth since the third quarter of 2023. This growth was primarily driven by the company’s large port machinery, oil and gas equipment, and overseas mining trucks, which are part of its emerging business sectors.
Fung remains optimistic about Sany’s future, citing sustainable overseas growth and the stabilization of domestic coal mining equipment as key factors. The company’s revenue increased by 15% year-over-year to RMB5.9 billion, although the gross margin slightly narrowed due to product mix factors. Despite this, the current valuation of 8x 2025E P/E is considered attractive amid the earnings recovery, leading Fung to maintain a Buy rating with a target price of HK$8.2.