20220901-招银国际-三一国际-00631.HK-Beat_expectation__2Q22_core_profit_+43__YoY_on_strong_margin_recovery_4页_824kb

报告摘要

SANY International (631 HK) Company Update Summary

Core Content

SANY International (631 HK) has reported strong financial performance in the second quarter of 2022 (2Q22), with a notable improvement in core net profit and gross margin. The company's results reflect a strategic focus on cost optimization and overseas expansion, which have contributed to its earnings growth. Analysts from CMB International Global Markets have reiterated a BUY recommendation with an unchanged target price of HK$14.60 (23x 2022E P/E).

Key Financial Highlights

2Q22 Results

Revenue: RMB3.5bn, up 37% YoY.
Gross Margin: Expanded 3.8ppt YoY and 5.8ppt QoQ to 26.9%, the highest since 3Q21.
Core Net Profit: Surged 43% YoY to RMB462mn, accelerating from 31% in 1Q22.
Operating Cash Inflow: RMB99mn, down 88% YoY, attributed to high base from previous year's down-payment, increased payables, and component inventory buildup.

1H22 Results

Total Revenue: RMB7.6bn, up 53% YoY.
Core Net Profit: RMB906mn, up 37% YoY (excluding one-off gains from subsidiary disposal).
S&D Expense Ratio: Increased 0.4ppt YoY to 5.3%.
Admin Expense Ratio: Decreased 2ppt YoY to 7.4%.
Pretax Profit: RMB514mn, down 2% YoY.

Revenue Breakdown by Region

Mainland China: RMB5,704mn, up 38.6% YoY.
Asia (ex-China): RMB1,181mn, up 130.4% YoY.
European Union: RMB206mn, up 176.7% YoY.
USA: RMB147mn, up 16.3% YoY.
Others: RMB394mn, up 153.6% YoY.
Total Revenue (1H22): RMB7,632mn, up 53% YoY.

Earnings Summary (YE 31 Dec)

Financial Year	Revenue (RMB mn)	YoY Growth (%)	Core Net Profit (RMB mn)	Core EPS (RMB)	YoY Growth (%)	EV/EBITDA (x)	P/E (x)
FY20A	7,364	30.2	1,045	0.34	19.6	13.3	21.1
FY21A	10,195	38.4	1,087	0.35	3.0	11.7	16.5
FY22E	15,293	50.0	1,655	0.53	52.3	8.6	12.8
FY23E	18,403	20.3	1,992	0.63	20.3	7.3	10.5
FY24E	21,739	18.1	2,327	0.74	16.8	6.4	9.0

Key Ratios

Metric	FY20A	FY21A	FY22E	FY23E	FY24E
Gross Margin (%)	27	23	24	24	23
EBITDA Margin (%)	21	17	15	15	15
EBIT Margin (%)	17	15	13	13	13
Net Profit Margin (%)	14	13	11	11	11
ROE (%)	14	15	18	19	19
P/B (x)	2.8	2.4	2.1	1.8	1.6
Yield (%)	1.9	1.9	2.4	2.9	3.4

Major Risk Factors

Weakness in mining activities.
Higher-than-expected expenses for new products.
Rebound of raw material costs and freight rates.

Strategic Drivers for Earnings Growth

Favorable policies to boost coal production.
Intelligent product development.
On-track growth in robotics orders.
Robust overseas sales, particularly in Asia (ex-China) and EUI.

Share Performance

Market Cap: HK$25,742mn.
Avg 3 mths t/o: HK$16mn.
52w High/Low: HK$10.80 / HK$6.85.
Total Issued Shares: 3,154mn.

Analyst Recommendations

BUY (Maintain) with a Target Price of HK$14.60.
Current Price: HK$8.14.
Up/Downside: +79%.

Related Reports

SANY Int'l - Post-results and NDR takeaways: Expect a strong year in 2022E (31 Mar 2022).
SANY Int'l - NDR takeaways: Growth to accelerate in 2022E on strong backlog (20 Jan 2022).

Conclusion

SANY International is demonstrating resilience and growth potential, driven by improved gross margins, robust overseas sales, and strategic product development. Despite some challenges, the company is well-positioned for continued performance in the coming quarters. The BUY recommendation remains in place, with a target price of HK$14.60. Investors should be aware of the potential risks, including mining activity weakness and rising costs, and consider consulting a financial advisor before making investment decisions.

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