20240329-招银国际-三一国际-00631.HK-Solar_power_business_remains_major_investor_concern_during_site_visit_7页_977kb

SANY International's recent report highlights concerns over its solar power business and revised earnings forecasts. During a post-results meeting, investors primarily asked about solar power, prompting a 27% reduction in 2024E and 30% in 2025E earnings estimates due to lower existing business projections and planned investments. The company targets RMB5bn revenue in 2024, with ~RMB345bn from solar products, including 5GW solar cell & module capacity. Risks include solar's competitive pressures and the potential for losses in emerging sectors, while overseas markets, particularly Russia and Indonesia, drive growth in large mining trucks and telescopic handlers. Financially, 2023 saw modest profit growth but lower-than-expected results due to impairment and increased R&D expenditure. The solar power segment, though a major investor concern, has a target price of HK$8 based on 11x 2024E P/E, reflecting resilience in other areas. Key risks involve coal mining weakness and raw material costs, with the analyst certification focusing on the strong growth story despite ephemeral challenges, maintaining a BUY recommendation for SANY International.