CITIC Securities: Maintains Sany Heavy Industries (06031) H-share target price of HK$28 and maintains a “buy” rating

The Zhitong Finance App learned that CITIC Securities released a research report stating that it maintains the Sany Heavy Industries (06031) H share target price of HK$28 and the target price of A shares, both of which maintain a “buy” rating. The bank maintained the 2026/2027/2028 net profit forecast of 109/143/18.2 billion yuan, and the target price for H shares corresponds to 23 times the price-earnings ratio in 2026.

The company achieved operating income of 53.31 billion yuan in the first half of 2026, up 19.7% year on year; net profit to mother was 5.69 billion yuan, up 9.1% year on year. Among them, the second quarter achieved operating income of 29.26 billion yuan, up 24.6% year on year; net profit to mother was 3.21 billion yuan, up 16.9% year on year. The company's revenue grew rapidly in the first half of the year, and both domestic and foreign markets achieved growth. Overseas revenue increased 21.8% year on year, accounting for 61.3% of main revenue. Profitability was disrupted by increased exchange losses and credit impairment due to the appreciation of RMB, but overseas gross margin remained impressive, reaching 32.5%, up 1.3 percentage points from the previous year.

Looking ahead to the second half of the year, CITIC Securities believes that domestic demand for construction machinery continues to recover moderately, the company's overseas channels, services and local manufacturing continue to improve, and there is still a foundation for increasing global share; with the increase in revenue scale, product structure improvement, and the deepening of lean operations, the company's medium- to long-term profitability is expected to continue to increase.