UBS: Raising the target price of Sany International (00631) to HK$10.8 to reaffirm the “buy” rating

The Zhitong Finance App learned that UBS released a research report saying that based on the results and order situation for the first half of the year, Sany International (00631)'s 2026-2028 earnings forecast was raised by 3% to 16% to reflect stronger profits from mining trucks and port machinery than expected, but this was partially offset by lower assumptions for coal and emerging businesses. The target price-earnings ratio will remain 12 times unchanged next year, and the target price will be raised from HK$9.45 to HK$10.8, maintaining the “buy” rating.

Highlights of the investor conference held after Sany International's results for the first half of the year showed that the mining equipment business was growing strongly overseas. Management reiterated the target of 8 billion yuan in overseas revenue from the mining equipment business, and currently has orders of 3.4 billion yuan. In-hand orders for port machinery reached 7.9 billion yuan, which is higher than the level at the beginning of the year. About 80% of production capacity has already been reserved in 2027. In terms of the photovoltaic business, losses in the first half of the year were about 400 million yuan, and losses in the third quarter narrowed moderately from quarter to quarter. Management confirmed that it will exit the PV business in an orderly manner and is currently evaluating the risk of impairment. The final results will be reflected in the 2026 full-year results.