Zhongtong Finance APP learned that First Shanghai issued a research report stating that they maintain a "buy" rating on Sany Int'l (00631) and adjusted revenue forecast for 2024/2025/2026 to RMB 26.848 billion / 32.097 billion/ 38.601 billion yuan; adjusted net profit forecast to RMB 2.193 billion / 2.534 billion / 2.958 billion yuan, and adjusted target price to HKD 8.12. Based on the development potential of the company's emerging equipment business and oil and gas business, the sufficient order backlog on the mining equipment sector and logistics equipment sector, the company's intelligentization, globalization, and electrification strategy promotion, and the stable growth of the port market, the bank continues to be bullish on the company's medium- and long-term development.

First Shanghai's main points are as follows:

The performance in 2023 created a new high, but the performance in the first quarter did not meet expectations:

In 2023, the company achieved revenue of RMB 20.277 billion, an increase of 30.5% YoY; the comprehensive gross profit margin was 26.9%, an increase of 3.5 percentage points YoY; net income attributable to shareholders was RMB 1.929 billion, an increase of 15.9% YoY, and performance reached a record high. This is mainly due to the continuous market penetration of intelligent and electric products, which drive significant growth in revenue from comprehensive mining, mine cars, wide-body cars, and large port machinery. International sales revenue also grew significantly due to the company's continuous improvement in globalization. In the first quarter of 2024, the company achieved revenue of RMB 5.129 billion, a decrease of 5.7% YoY; the comprehensive gross profit margin was 24.9%, an increase of 0.5 percentage points YoY; net income attributable to shareholders was RMB 486 million, a decrease of 24.7% YoY. The unexpected performance in the first quarter was mainly due to the impact of the coal industry on mining equipment revenue.

Main business continued to grow:

The competitiveness and market share of the company's core products continued to improve. In 2023, the company's mining equipment sector achieved revenue of RMB 11.8 billion, an increase of 19% YoY. Among them, the sales of mine cars achieved significant growth, with revenue of RMB 4 billion, an increase of 38% YoY, and overseas mine car sales achieved revenue of RMB 650 million, an increase of 311% YoY. Currently, the company has become the largest mine car supplier in China, and the after-market business achieved rapid growth, with sales of RMB 1.58 billion, an increase of 40% YoY, and gross profit margin of 39%, an increase of 2 percentage points YoY. Logistics equipment sector achieved annual revenue of RMB 5.8 billion, an increase of 26% YoY. Positive swing / stackers maintain the first brand, with the gross profit margin of positive swing cranes increasing by 6.2 percentage points YoY to 39%, and the gross profit margin of stackers is 32%, an increase of 7 percentage points YoY.

In terms of overseas business, the overseas sales of the logistics equipment sector have surged, with sales reaching RMB 3.55 billion, an increase of 69% YoY, including a 34% increase in small port machinery sales, a 35% increase in large port machinery sales, and a 260% increase in telescopic arm sales. At the same time, in 2023, the large port machinery order reached RMB 2.64 billion, a historical high, with the successful bid of large port machinery order totaling RMB 700 million from PSA, HPH, and APMT. The sufficient order backlog.