Sany Heavy Equipment International Holdings Co (0631) AI Stock Analysis

• Market Cap: $19.97B
• Dividend Yield: 3.1%
• Average Volume (3M): 5.41M
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.91
• Revenue Growth: 5.79%
• EPS Growth: -44.89%
• Country: HK
• Employees: 7,872
• Sector: Industrials
• Sector Strength: 90
• Industry: Agricultural - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 3,230,704,000
• 10 Day Avg. Volume: 11,501,980
• 30 Day Avg. Volume: 5,411,890
• PEG Ratio: -6.88
• Price to Book (P/B): 2.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 680.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8.71
• Price Target Upside: 41.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ―

Sany Heavy Equipment is positioned positively with strong technical momentum and reasonable valuation. However, challenges remain in operational efficiency and cash flow consistency, which are critical for sustaining long-term growth.

Positive Factors

Emerging Business Segments

Emerging business segments are running at a manageable level of loss, which is expected to ease market concerns.

Growth Trajectory

SANYI is expected to return to a growth trajectory, driven by stabilized demand for road headers, strong growth of large-size port equipment, and better-than-expected domestic mining trucks.

International Demand

Revenue from overseas grew 28% YoY to RMB8.2bn, indicating strong international demand for SANYI's products.

Negative Factors

Coal Mining Activities

Major risk factors include weakness of coal mining activities in China, higher-than-expected loss from emerging business, and uncertainties of the US tariff policy on port machinery.

Impairment Impact

Net profit dropped 43% YoY to RMB1.1bn, largely due to the impairment of goodwill related to the oil & gas business acquisition and impairment of property value.

Sany Heavy Equipment International Holdings Co Business Overview & Revenue Model

Company Description

Sany Heavy Equipment International Holdings Company Limited, an investment holding company, engages in the manufacture and sale of mining equipment, logistics equipment, robotic, smart mine products, and spare parts. It operates in two segments, Mining Equipment and Logistics Equipment. The Mining Equipment segment provides coal mining machinery products, including road headers, such as soft rock and hard rock road headers, integrated excavation, bolting, and self-protection machinery; mining equipment consisting of coal mining machines, hydraulic support system, scraper conveyors, etc.; non-coal mining machinery products comprising tunnel road headers and mining machines; mining transport equipment, including mechanical drive off-highway and electric drive off-highway dump trucks, widebody vehicles, and other relevant products; spare parts; robotic products, such as robotic system integration, mobile robots, and electric forklifts; and smart mine products, including unmanned driving, automated integrated mining, and smart mine operation systems. The Logistic Equipment segment offers container equipment, such as front loaders, stacking machines and quayside gantry cranes, etc.; bulk material equipment, which comprise grippers, elevated hoisting arms, etc.; and general equipment, including heavy-weight forklifts, telehandlers, etc. In addition, the company provides maintenance and property development services. It operates in Mainland China, rest of Asia, the European Union, the United States, and internationally. The company was founded in 2004 and is headquartered in Shenyang, the People's Republic of China. Sany Heavy Equipment International Holdings Company Limited is a subsidiary of Sany Hongkong Group Limited.

How the Company Makes Money

Sany Heavy Equipment International Holdings Co makes money through the sale of its diverse product lineup, including excavators, cranes, and other heavy machinery, to customers in the construction, mining, and energy industries. Revenue is primarily generated from direct sales of equipment, as well as from after-sales services such as maintenance and repair. Key revenue streams include domestic sales in China and international sales across various global markets. The company also leverages strategic partnerships and collaborations to expand its market presence and enhance its product offerings, contributing to its overall earnings.

Sany Heavy Equipment International Holdings Co Financial Statement Overview

Summary

Sany Heavy Equipment shows solid revenue growth and a stable financial structure. However, negative EBIT and inconsistent cash flows require attention, highlighting the need to improve operational efficiency and cash flow management.

Income Statement

The company shows a positive revenue growth with an increasing trend over the years, indicating strong demand and market presence. However, the recent negative EBIT and declining net income highlight operational and profitability challenges. Gross profit margins have remained relatively stable, suggesting effective cost management despite the revenue increase.

Balance Sheet

Sany Heavy Equipment has maintained a solid equity base, with a healthy equity ratio indicating financial stability. The debt-to-equity ratio is manageable, showing a prudent approach to leverage. However, the increase in total debt over the years could pose potential risks if not managed carefully.

Cash Flow

Cash flow from operations has been inconsistent, with a significant decline in free cash flow recently. The lack of operating cash flow in the latest period is concerning, potentially affecting liquidity and investment capability. The company needs to enhance cash generation to support future growth and debt obligations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
21.91B	20.28B	15.54B	10.19B	7.36B
	Gross Profit
4.91B	5.45B	3.63B	2.39B	1.96B
	EBIT
1.92B	67.03M	1.43B	1.21B	1.07B
	EBITDA
1.30B	2.94B	2.35B	1.81B	1.31B
	Net Income Common Stockholders
1.10B	1.93B	1.66B	1.26B	1.05B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.73B	5.40B	4.78B	5.03B	4.97B
	Total Assets
40.93B	34.96B	24.95B	20.79B	17.46B
	Total Debt
10.02B	7.94B	3.65B	3.45B	3.14B
	Net Debt
4.68B	4.70B	955.57M	2.10B	2.20B
	Total Liabilities
28.75B	23.42B	14.85B	12.00B	9.61B
	Stockholders Equity
12.22B	11.59B	10.04B	8.70B	7.84B
Cash Flow		Free Cash Flow
0.00	36.79M	-233.92M	-16.43M	677.23M
	Operating Cash Flow
0.00	2.52B	1.08B	922.80M	1.07B
	Investing Cash Flow
0.00	-4.97B	639.25M	-296.01M	-647.37M
	Financing Cash Flow
0.00	2.96B	-376.81M	-226.70M	-601.72M

Sany Heavy Equipment International Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0631, the sentiment is Positive. The current price of 6.15 is above the 20-day moving average (MA) of 5.64, above the 50-day MA of 5.29, and above the 200-day MA of 4.75, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 67.72 is Neutral, neither overbought nor oversold. The STOCH value of 59.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0631.

Sany Heavy Equipment International Holdings Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0631	73 Outperform	$19.97B	16.55	9.23%	3.10%	5.79%	-44.89%
Sector *	66 Neutral	$4.49B	12.34	5.40%	248.65%	4.13%	-12.33%
FIRRF		$1.70B	8.57	11.27%	5.10%	―	―
LONKF		$1.10B	7.25	9.85%	6.96%	―	―
ZLIOF		$8.14B	11.62	6.96%	6.04%	―	―
HP6H		€1.33B	5.79	11.35%	1.21%	―	―
0564	83 Outperform	HK$30.97B	6.35	18.67%	6.05%	-0.25%	16.01%

Sany Heavy Equipment International Holdings Co Corporate Events

Sany Heavy Equipment Announces 2025 AGM and Key Resolutions

Sany Heavy Equipment International Holdings Co announced its upcoming Annual General Meeting scheduled for May 28, 2025. The meeting will address several key resolutions, including the adoption of financial statements, re-election of directors, declaration of a final dividend, and re-appointment of auditors. The company also seeks approval for the issuance and resale of shares, which could impact its capital structure and shareholder value.

Sany Heavy Equipment Clarifies Revenue Targets Amid Media Reports

Sany Heavy Equipment International Holdings Co issued a clarification announcement regarding recent media articles that stated the company has set a target to achieve a revenue of RMB50 billion by 2027 with a gross profit margin of 24%. The company clarified that these figures are merely targets for the next three years and do not constitute a profit forecast. Stakeholders are advised to exercise caution when dealing with the company’s shares.

Sany Heavy Equipment Grants Over 36 Million Restricted Shares to Employees

Sany Heavy Equipment International Holdings Co announced the grant of 36,465,501 restricted shares to 1,859 eligible participants as part of its 2019 Restricted Share Award Scheme. This move is aimed at incentivizing employees, including senior managers and directors, and aligning their interests with the company’s long-term goals. The vesting of these shares is scheduled over a five-year period, indicating a strategic approach to employee retention and motivation.

Sany Heavy Equipment Announces Final Dividend for 2024

Sany Heavy Equipment International Holdings Co has announced a final cash dividend of HKD 0.29 per share for the financial year ending December 31, 2024. This announcement reflects the company’s financial health and commitment to delivering shareholder value. The dividend will be paid on June 20, 2025, following shareholder approval on May 28, 2025, and the ex-dividend date is set for June 3, 2025.

Sany Heavy Equipment Reports 2024 Financial Results with Revenue Growth but Profit Decline

Sany Heavy Equipment International Holdings Co announced its annual results for the year ended December 31, 2024. The company reported a revenue increase of approximately 8% to RMB21,909.6 million compared to the previous year. However, profit attributable to owners of the parent decreased by about 42.9% to RMB1,101.6 million. The board recommended a final dividend of HK$0.29 per share. Despite the revenue growth, the significant drop in profit indicates challenges in managing costs and expenses, impacting the company’s financial performance and potentially affecting shareholder returns.

Sany Heavy Equipment Schedules Board Meeting to Review Annual Results

Sany Heavy Equipment International Holdings Co has announced a board meeting scheduled for March 31, 2025, to discuss and approve the audited annual results for the year ending December 31, 2024. The meeting will also consider the declaration of a final dividend and address other business matters, indicating a focus on financial transparency and shareholder value.

Sany Heavy Equipment Announces Investor Conference for 2024 Annual Results

Sany Heavy Equipment International Holdings Co announced an investor conference to discuss its audited annual results for the year ending 31 December 2024. The conference, scheduled for 1 April 2025, will be held in Changsha, Hunan Province, and will also be accessible via web-based video conferencing. This event aims to provide shareholders and potential investors with a deeper understanding of the company’s business operations and future prospects.

Sany Heavy Equipment Announces Disposal of Turbine Tower Assets

Sany Heavy Equipment International Holdings Co has announced a connected transaction involving the disposal of its turbine tower assets. The agreement, dated March 12, 2025, involves Sany Marine Heavy Industry (Hunan) and Sany Heavy Steel selling these assets to Sany Turbine Tower Technology for approximately RMB52.85 million. This transaction is considered a connected transaction due to the involvement of Mr. Liang Wengen, a controlling shareholder, and is subject to specific reporting requirements under the Hong Kong Stock Exchange’s Listing Rules. The assets, used in the manufacturing of wind turbine towers, had a net book value slightly higher than the sale price, indicating a strategic move to streamline operations or refocus business priorities.