HK Stock Market Move | SANY INT'L (00631) drops more than 6% to create a new low for the year. Market concerns sparked by first quarter performance lead to downgrade of company's target price by Lian.

SANY INT'L (00631) fell more than 6%, reaching a new low of HK$8.49 so far this year. As of the time of writing, it is down 6.29% at HK$8.49, with a turnover of 56.5851 million Hong Kong dollars. On the news side, recently, SANY INT'L released its first-quarter performance, showing that the group achieved revenue of 6.651 billion yuan, an increase of 13.2% year-on-year; the net profit attributable to the owners of the parent company was 509 million yuan, a decrease of 19.8% year-on-year. The decrease in net profit is mainly due to the slightly lower gross profit margin of the logistics equipment business, leading to a decrease in the overall gross profit margin of products; and during the period, the rise in prices of silicon wafers, silicon materials, and core raw materials affected the declining overall gross profit margin of products in emerging industries. A report from Lyon pointed out that the first-quarter performance of SANY INT'L has raised market concerns. Although overseas income doubled year-on-year, profit margins and cost control did not meet expectations. The company's net profit forecast for 2026 and 2027 was cut by 28% and 19% respectively, to reflect the pressure on profit margins. The target price was also lowered from HK$16 to HK$12, maintaining an "outperform the market" rating. The report mentioned that SANY INT'L's first-quarter CECEP Solar Energy sales fell 74% year-on-year and recorded a loss of 120 million yuan, with management expecting a loss of more than 400 million yuan for the full year, mainly due to initial investments in personnel for microgrids and overseas project expansion, exceeding market expectations.