SANY Int'l Shares Surge Over 7% in Afternoon Trading; UBS Keeps 'Buy' Rating

Deep News09-03

SANY INT'L (00631) saw its share price climb nearly 9% during intraday trading. As of the latest update, the stock had advanced 7.14% to HK$9.68, with transaction volume reaching HK$101.3 million.

Key takeaways from the investor meeting held after SANY INT'L's first-half results revealed robust overseas growth momentum in its mining equipment division. Management reiterated the HK$8 billion target for overseas revenue in the mining equipment segment, with current order backlog standing at HK$3.4 billion. The port machinery order backlog also showed strength, reaching HK$7.9 billion, up from the beginning of the year, and approximately 80% of production capacity is already reserved for 2027. Furthermore, management confirmed the company's orderly exit from the photovoltaic business.

In a research report, UBS revised its earnings per share forecasts for SANY INT'L for 2026 through 2028 upward by 3% to 16%, reflecting stronger-than-expected profitability from mining trucks and port machinery, though this was partially offset by lowered assumptions for coal and emerging businesses. The investment bank maintained a price-to-earnings multiple of 12 times for the upcoming year, raising its target price from HK$9.45 to HK$10.80 while keeping a 'Buy' rating on the stock.

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