SANY INT'L (00631) rose more than 6%, reaching a new high of HKD 12.85, with its stock price accumulating a gain of over 40% this month. As of the time of writing, the stock was up 6.25%, trading at HKD 12.75, with a turnover of HKD 324 million.
Recent data shows that prices for metal commodities have been on a sustained upward trend. China Merchants Securities believes that against the backdrop of reinforced expectations for Federal Reserve interest rate cuts and strengthening mining commodity prices, global demand for the mining machinery industry may be approaching an inflection point. The firm is optimistic that the sector's beta is entering a medium-to-long-term upward cycle.
Looking ahead, with persistent expectations for U.S. dollar interest rate cuts, the likelihood of a global upswing in mining equipment demand by 2026 appears more certain. From a medium-term perspective, as resource supply tightens and ore grades decline, the global mining equipment sector is poised for a new, record-breaking growth cycle.
Investment focus is recommended on two main themes: "surface mining equipment/leading international expansion progress" and "business models undergoing marginal changes." Galaxy Securities previously indicated that, in the short term, the company's roadheaders and wide-body vehicle sales are expected to bottom out and recover, benefiting from a domestic mining uptick. Over the medium to long term, the company's leading advantage in roadheaders remains solid, the proportion of non-coal mining equipment is expected to continuously increase, and its significant strengths in intelligentization, electrification, and globalization position it to capitalize on large-scale, long-cycle domestic infrastructure projects, coal machinery intelligence trends, and overseas mining equipment replacement cycles, potentially leading to substantial earnings growth.
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