> **来源：[研报客](https://pc.yanbaoke.cn)** # SANY International (631 HK) Summary ## Core Content SANY International (631 HK) reported its first-quarter 2026 (1Q26) results, showing a **13% YoY increase in revenue** to RMB6,651 million, but a **20% YoY drop in net profit** to RMB509 million. The results were considered weak but somewhat expected by the market, primarily due to a **3.6% YoY decline in gross margin** and **decline in road header sales**, which had a high gross margin, as well as **expanding losses in the solar business**. Despite the weak results, **mining truck revenue surged by 65% YoY**, contributing **27% to total revenue** (up from 19% in 1Q25). Additionally, **large-size port equipment revenue increased by 74% YoY**, indicating positive momentum in certain segments. The report maintains a **BUY rating** with an **unchanged target price of HK\$18.9**, based on a **20x 2026E P/E** ratio, equivalent to the peak level since 2017, reflecting the **upcycle of metals**. ## Key Financial Highlights - **Revenue Growth (YoY):** 13% in 1Q26, with an overall growth trend of 30.9% in FY26E. - **Net Profit Growth (YoY):** -20% in 1Q26, with a 47.4% increase in FY26E. - **Gross Margin:** Dropped to 20.7% in 1Q26 from 24.3% in 1Q25, mainly due to the decline in road header sales and solar business losses. - **P/E Ratio:** 10.4x in FY26E, down from 25.4x in FY24A. - **P/B Ratio:** 1.9x in FY26E, declining from 2.3x in FY24A. - **Dividend Yield:** Increased to 5.3% in FY26E from 3.1% in FY24A. - **ROE:** Improved to 19.4% in FY26E from 9.3% in FY24A. ## Key Business Segments - **Road Header:** Revenue declined by 14% YoY in 2023 and further by 29.4% in 2024, with a slight recovery in 2025. - **Combined Coal Mining Units (CCMU):** Declined by 22% YoY in 2023 but dropped further in 2024 and 2025. - **Mining Trucks:** Showed strong growth, with a **66.2% YoY increase in 2026E** and expected to continue growing at a **20.9% YoY rate** in 2028E. - **Lithium Battery:** Revenue increased significantly, with a **457.1% YoY growth in 2025A** and **50.0% YoY growth in 2026E**. - **Solar Power:** Showed a **31.8% YoY increase in 2025A**, but the segment has been a source of loss in recent quarters. - **Hydrogen:** Demonstrated growth, with a **161.7% YoY increase in 2025A** and **55.0% YoY growth in 2026E**. ## Market and Investor Focus - The **post-results investor call** is expected to focus on: - The **latest backlog** - **Mining truck growth trend** - **Timing of domestic coal mining machinery recovery** - The report highlights **structural growth** in mining trucks, which is seen as a **key driver** for future earnings and revenue growth. ## Key Risks - **Further weakness in coal mining activities in China** - **Higher-than-expected operating losses in emerging businesses** - **Cost inflation due to elevated commodity prices** ## Share Performance - **Market Cap:** HK\$32,582.8 million - **Avg 3 mths t/o:** HK\$136.4 million - **52w High/Low:** HK\$15.97 / HK\$5.46 - **Total Issued Shares:** 3,232.4 million - **Shareholding Structure:** - Sany Heavy Equipment Investments Company: 64.9% - Free float: 33.9% ## Price Performance - **12-month Price Performance:** As shown in the chart, the share price has experienced significant fluctuations, with a **44.0% increase** in the 6-month period ending in Feb-26. ## Valuation Bands - **P/E Band:** The P/E ratio has been declining over time, with a **10.4x** in FY26E and expected to fall further to **6.3x** in FY28E. - **P/B Band:** Also shows a declining trend, from **2.4x** in 2023A to **1.4x** in FY28E. ## Analyst Ratings - **CMBIGM Rating:** BUY - **Target Price:** HK\$18.9 - **Current Price:** HK\$10.08 - **Up/Downside:** 87.5% ## Conclusion Despite the weak 1Q26 performance, the report remains **positive on SANYI's structural growth**, particularly in the **mining truck segment**, which is expected to continue growing at a strong rate. The **BUY rating** and **target price** reflect confidence in the company's ability to recover and grow in the coming years, driven by **increased demand in mining and metals sectors**. However, the company faces **key risks** including **declining coal mining activities**, **emerging business losses**, and **cost inflation**, which could affect its performance.