On May 29, Sany International fell 5.04% in regular trading, trading at HKD 7.74/share with turnover of HKD 52.83 million. The stock has now declined over 50% from its March high, hitting a fresh annual low.
The continued weakness stems from the company's Q1 results released on May 20, which showed revenue of RMB 6.651 billion (up 13.2% YoY) but attributable profit of RMB 509 million (down 19.8% YoY). The profit decline was driven by a higher mix of lower-margin logistics equipment products and rising raw material costs including silicon wafers and battery cells compressing margins in the emerging industries segment.
CLSA noted that while overseas revenue doubled YoY, profitability and cost control missed expectations. The broker highlighted that Q1 solar sales plunged 74% YoY with a RMB 120 million loss, and management guided full-year losses in emerging businesses exceeding RMB 400 million due to microgrid staffing and overseas project expansion costs. CLSA cut net profit forecasts for FY26/27 by 28%/19% and slashed its target price from HKD 16 to HKD 12, while maintaining an Outperform rating, noting that new business losses still require time to resolve.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
Comments