CMB International: Lower SANY INT'L (00631) Target Price by 3% to 18.9 Hong Kong dollars, Reiterates "Buy" Rating.

CMB International has released a research report stating that the target price of SANY INT'L (00631) has been lowered by 3% to 18.9 Hong Kong dollars from 19.5 Hong Kong dollars, and has reiterated a "buy" investment rating. CMB International hosted an NDR for SANY INT'L in Hong Kong last week. Investors are mainly concerned about the growth prospects of large mining trucks and potential disposal methods for the photovoltaic business. The main highlights include: (1) Significantly increased orders for mining trucks (overseas), from 3.6 billion RMB in March to 4.5 billion RMB in mid-April; (2) The profitability of large port machinery will improve significantly in the future due to sufficient orders and increased average selling prices; (3) Management has not yet decided on the future direction of the photovoltaic business, which incurred losses of about 300 million RMB, mainly including 200 million RMB in non-cash costs (depreciation). The bank has adjusted profit forecasts for 2026/27/28 by -3%/+1%/+3% respectively to reflect profit increases in mining trucks and telescopic boom stackers, as well as profit decreases in tunnel boring machines, fully mechanized coal mining, and photovoltaic businesses. Despite expecting pressure on the first quarter performance (to be announced on May 20) of 2026 due to the weakness in the new business segment, the bank remains optimistic about the structural growth prospects of SANY INT'L, considering the increasing contribution of the large mining truck business.