Initiation of Coverage: Mining trucks to drive a re-rating

Research evidence excerpt

Initiation of Coverage: Mining trucks to drive a re-rating

ated technology that can offer a lower TCO EPS (UBS, diluted) (Rmb)

(total cost of ownership), Sany Group's global distribution network and an agile From To % ch Cons.

aftermarket business model in core emerging markets. We forecast its rigid mining truck 12/26E - 0.54 - 0.73

market share to rise from 1.4% in 2025 to 7.0% by 2030. 12/27E - 0.67 - 0.97

12/28E - 0.80 - 1.23

Mining/port machinery major drivers; solar restructuring a positive catalyst

Yuhua Li

In 2025-30E, we expect mining trucks and port machinery to make up 64% and 22% of

Analyst

the rise in gross profit, respectively. Oil & gas delivers moderate growth, coal machinery yuhua.li@ubs.com

is a defensive base and losses for the emerging renewables businesses have narrowed +852-2971 6491

from the 2025 trough. Sany Intl has attracted criticism for its sprawling, poorly

Phyllis Wang

synergised business mix, which we think is justified. We believe a rationalisation of the

loss-making segments (e.g. a potential disposal of the solar business) could be a S1460517100001

meaningful re-rating catalyst (management said it is considering a disposal of the solar phyllis.wang@ubs.com

business). +86-21-3866 8964

Valuation: initiate coverage with a price target of HK$9.45

We use a PE methodology to derive our price target based on 2027E EPS and applying a

target PE of 12x, in line with the historical average since 2018 and based on the same

EPS growth (2025-30E: 16%; 2018-25: 16%). We are below sell-side consensus as we

believe the market has yet to reflect the Q126 results and due to a different EPS basis.

We believe upside catalysts may include: 1) mining business better than expectations; 2)