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Sany Heavy Equipment International Holdings Co Ltd (HK:0631)
:0631

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

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HK

Sany Heavy Equipment International Holdings Co

(OTC:0631)

Rating:73Outperform
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 (0631) vs. iShares MSCI Hong Kong ETF (EWH)

Sany Heavy Equipment International Holdings Co Business Overview & Revenue Model

Company DescriptionSany 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 MoneySany 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
70
Positive
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
75
Positive
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
60
Neutral
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
21.91B20.28B15.54B10.19B7.36B
Gross Profit
4.91B5.45B3.63B2.39B1.96B
EBIT
1.92B67.03M1.43B1.21B1.07B
EBITDA
1.30B2.94B2.35B1.81B1.31B
Net Income Common Stockholders
1.10B1.93B1.66B1.26B1.05B
Balance SheetCash, Cash Equivalents and Short-Term Investments
7.73B5.40B4.78B5.03B4.97B
Total Assets
40.93B34.96B24.95B20.79B17.46B
Total Debt
10.02B7.94B3.65B3.45B3.14B
Net Debt
4.68B4.70B955.57M2.10B2.20B
Total Liabilities
28.75B23.42B14.85B12.00B9.61B
Stockholders Equity
12.22B11.59B10.04B8.70B7.84B
Cash FlowFree Cash Flow
0.0036.79M-233.92M-16.43M677.23M
Operating Cash Flow
0.002.52B1.08B922.80M1.07B
Investing Cash Flow
0.00-4.97B639.25M-296.01M-647.37M
Financing Cash Flow
0.002.96B-376.81M-226.70M-601.72M

Sany Heavy Equipment International Holdings Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.09
Price Trends
50DMA
5.26
Positive
100DMA
4.92
Positive
200DMA
4.74
Positive
Market Momentum
MACD
0.24
Negative
RSI
66.40
Neutral
STOCH
62.59
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 6.09 is above the 20-day moving average (MA) of 5.62, above the 50-day MA of 5.26, and above the 200-day MA of 4.74, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 66.40 is Neutral, neither overbought nor oversold. The STOCH value of 62.59 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$19.97B16.559.23%3.10%5.79%-44.89%
66
Neutral
$4.50B12.295.40%248.66%4.13%-12.33%
$1.69B8.4011.27%5.13%
$1.09B7.259.85%6.96%
$8.14B11.626.96%6.04%
€1.33B5.7911.35%1.21%
83
Outperform
HK$30.97B6.3518.67%6.05%-0.25%16.01%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0631
Sany Heavy Equipment International Holdings Co
6.09
1.20
24.54%
FIRRF
First Tractor Co
0.88
-0.20
-18.52%
LONKF
Lonking Holdings
0.24
0.04
20.00%
ZLIOF
Zoomlion Heavy Industry Science & Technology Co
0.74
0.00
0.00%
DE:HP6H
Harbin Electric Co. Ltd. Class H
0.56
0.26
86.67%
HK:0564
Zhengzhou Coal Mining Machinery Group Co., Ltd. Class H
15.66
5.03
47.32%

Sany Heavy Equipment International Holdings Co Corporate Events

Sany Heavy Equipment Announces 2025 AGM and Key Resolutions
Apr 28, 2025

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
Apr 3, 2025

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
Apr 1, 2025

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
Mar 31, 2025

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
Mar 31, 2025

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
Mar 17, 2025

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
Mar 17, 2025

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
Mar 12, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.