According to a research report released by CITIC CLSA, SANY INT'L (00631) fell short of expectations in both profit margin and cost control performance for the first quarter of 2026, raising investor concerns. The firm has lowered its target price for the company from HK$16 to HK$12, while maintaining an "Outperform" rating. The report also revised down net profit forecasts for 2026 and 2027 by 28% and 19%, respectively, to RMB 2.211 billion and RMB 3.147 billion, reflecting margin pressures. Additionally, the price-to-earnings valuation multiple was reduced from 14.5 times to 13 times, taking into account depreciation pressures on the yuan within the machinery sector.
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