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

• Market Cap: $22.13B
• Dividend Yield: 4.23%
• Average Volume (3M): 8.17M
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.87
• Revenue Growth: 15.52%
• EPS Growth: -23.76%
• Country: HK
• Employees: 7,872
• Sector: Industrials
• Sector Strength: 73
• Industry: Agricultural - Machinery
• EPS (TTM): 0.38
• Shares Outstanding: 3,230,807,600
• 10 Day Avg. Volume: 7,983,820
• 30 Day Avg. Volume: 8,170,220
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 1.27
• Enterprise Value/Gross Profit: 5.69
• Enterprise Value/Ebitda: 21.42
• 1Y Price Target: $8.89
• Price Target Upside: 29.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: HK$8.00 ▲(16.11% Upside)

Sany Heavy Equipment's overall stock score is driven primarily by strong technical analysis, indicating positive market momentum. While financial performance highlights growth, operational inefficiencies and cash flow inconsistencies pose risks. The valuation is reasonable, with the dividend yield providing additional support.

Positive Factors

Cost Management

The administrative expense ratio dropped significantly due to excellent cost control and disciplined R&D spending.

Earnings Forecast

The earnings forecast is revised up due to the resilient logistics equipment segment and the rising contribution of emerging business and oil & gas equipment.

Negative Factors

Coal Mining Activity

Major risk factors include weakness in coal mining activities in China and uncertainties of the US tariff policy on port machinery.

Profit Decline

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 range of heavy machinery products, which are utilized in various industries including construction, mining, and infrastructure development. The company's revenue streams primarily come from the direct sales of equipment such as excavators, cranes, and concrete machinery. Additionally, Sany generates income from after-sales services, including maintenance and repair services, as well as the sale of spare parts. The company benefits from strategic partnerships and collaborations with global distributors and dealers, which help expand its market reach and enhance its sales channels. Furthermore, Sany invests in research and development to continuously improve its product offerings and maintain a competitive edge in the market.

Sany Heavy Equipment International Holdings Co Financial Statement Overview

Summary

Sany Heavy Equipment shows strong revenue growth and a stable financial structure. However, negative EBIT and inconsistent cash flows are concerning, indicating operational challenges and liquidity risks.

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
EBITDA	1.30B	2.94B	2.35B	1.81B	1.31B
Net Income	1.10B	1.93B	1.66B	1.26B	1.05B
Balance Sheet
Total Assets	40.93B	34.96B	24.95B	20.79B	17.46B
Cash, Cash Equivalents and Short-Term Investments	7.73B	5.40B	4.78B	5.03B	4.97B
Total Debt	10.02B	7.94B	3.65B	3.45B	3.14B
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	1.40B	36.79M	-233.92M	-16.43M	677.23M
Operating Cash Flow	2.15B	2.52B	1.08B	922.80M	1.07B
Investing Cash Flow	-973.45M	-4.97B	639.25M	-296.01M	-647.37M
Financing Cash Flow	894.53M	2.96B	-376.81M	-226.70M	-601.72M

Sany Heavy Equipment International Holdings Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.89
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 6.89 is below the 20-day moving average (MA) of 7.09, below the 50-day MA of 7.21, and above the 200-day MA of 5.53, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 39.96 is Neutral, neither overbought nor oversold. The STOCH value of 25.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$22.13B	15.05	11.02%	4.23%	15.52%	-23.76%
Sector *	64 Neutral	$10.73B	15.74	7.56%	2.01%	2.76%	-15.10%
FIRRF	―	$1.68B	9.33	10.46%	5.24%	―	―
LONKF	―	$1.51B	9.73	11.37%	4.42%	―	―
ZLIOF	―	$8.53B	13.03	7.06%	5.13%	―	―
HP6H	―	€1.96B	6.85	15.06%	―	―	―
0564	83 Outperform	HK$38.50B	7.36	18.67%	6.78%	-0.25%	16.05%

Sany Heavy Equipment International Holdings Co Corporate Events

Sany Heavy Equipment Strengthens Governance with Nomination Committee Terms

Sany Heavy Equipment International Holdings Co. has outlined the terms of reference for its Nomination Committee, which is responsible for overseeing the nomination procedures for the appointment, re-appointment, and removal of directors. The committee, consisting of at least three members, is primarily composed of independent non-executive directors and includes at least one director of a different gender. This structure aims to ensure diversity and independent oversight in the company’s governance. The announcement highlights the company’s commitment to maintaining a robust governance framework, potentially enhancing its reputation among stakeholders and aligning with best practices in corporate governance.

The most recent analyst rating on (HK:0631) stock is a Buy with a HK$8.70 price target. To see the full list of analyst forecasts on Sany Heavy Equipment International Holdings Co stock, see the HK:0631 Stock Forecast page.

Sany Heavy Equipment Reports Strong Q1 2025 Financial Performance

Sany Heavy Equipment International Holdings Co reported a significant financial performance for the first quarter of 2025, with a 14.6% increase in revenue to approximately RMB5.88 billion compared to the same period in 2024. The company also saw a 30.6% rise in net profit, reaching approximately RMB635.55 million, indicating strong operational efficiency and market demand.

The most recent analyst rating on (HK:0631) stock is a Buy with a HK$7.20 price target. To see the full list of analyst forecasts on Sany Heavy Equipment International Holdings Co stock, see the HK:0631 Stock Forecast page.

Sany Heavy Equipment Announces Board and Committee Structures

Sany Heavy Equipment International Holdings Co has announced the composition of its board of directors and the establishment of five key committees: Audit, Remuneration, Nomination, Strategic Investment, and ESG. This organizational structure aims to enhance governance and strategic oversight, potentially impacting the company’s operational efficiency and stakeholder confidence.

The most recent analyst rating on (HK:0631) stock is a Buy with a HK$7.20 price target. To see the full list of analyst forecasts on Sany Heavy Equipment International Holdings Co stock, see the HK:0631 Stock Forecast page.

Sany Heavy Equipment Secures Shareholder Approval for Key Resolutions at AGM

Sany Heavy Equipment International Holdings Co. announced the successful passage of all proposed resolutions at its Annual General Meeting held on May 28, 2025. Key resolutions included the adoption of financial statements, re-election of directors, declaration of a final dividend, and granting of mandates for share issuance and repurchase, reflecting strong shareholder support and strategic direction for the company’s future operations.

The most recent analyst rating on (HK:0631) stock is a Buy with a HK$7.20 price target. To see the full list of analyst forecasts on Sany Heavy Equipment International Holdings Co stock, see the HK:0631 Stock Forecast page.

Sany Heavy Equipment Schedules Board Meeting to Review Q1 2025 Financials

Sany Heavy Equipment International Holdings Co has announced a board meeting scheduled for May 29, 2025, to review and approve the unaudited consolidated financial data for the first quarter of 2025. This meeting is significant as it will provide insights into the company’s financial health and operational performance, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:0631) stock is a Buy with a HK$8.20 price target. To see the full list of analyst forecasts on Sany Heavy Equipment International Holdings Co stock, see the HK:0631 Stock Forecast page.