HK Stock Market Move | Sany Heavy Industry (06031) falls over 5% to a new low; third-quarter revenue and net profit both decline quarter-on-quarter.

Sany Heavy Industry (06031) fell over 5%, touching HK$15.56, a new low since listing. As of press time, it was down 4.86% at HK$15.66, with turnover of HK$57.7247 million. On the news front, Sany Heavy Industry announced last night that third-quarter operating revenue was RMB24.804 billion, up 16.96% year-on-year and down about 15% quarter-on-quarter; net profit attributable to shareholders of the listed company was RMB2.314 billion, up 20.62% year-on-year and down 27.9% quarter-on-quarter. CMSC previously noted that the main reasons for the weak share prices in the construction machinery industry were the impact of exchange losses on reported performance and macroeconomic factors such as geopolitical conflicts. Looking ahead to the second half of the year, the bank believes that the construction machinery beta still has persistence, and as the pressure from the exchange loss base weakens, an EPS+PE resonance rally is expected, and it is bullish on the sector outperforming the broader market.