SANY INT'L's stock plummeted 5.08% during intraday trading on Wednesday, following the release of a research report from CLSA that raised significant concerns about the company's recent financial performance.
The report highlighted that while SANY INT'L's overseas revenue doubled year-on-year in the first quarter, its profit margins and cost control fell short of market expectations. CLSA responded by cutting its net profit forecasts for the company for 2026 and 2027 by 28% and 19%, respectively, and lowered its target price from HK$16 to HK$12. The firm cited particular concern over a 74% year-on-year decline in solar sales, which resulted in a segment loss of RMB 120 million. Company management anticipates the full-year loss from its emerging businesses, driven by staffing costs in the microgrid unit and initial investments in overseas project expansion, to exceed RMB 400 million.
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