20230726-招银国际-三一国际-00631.HK-Positive_takeaways_from_Zhuhai_plant_visit_6页_1mb

SANY International Summary

Plant Visit Positives

• Confident of 100% revenue growth in overseas port machinery for 2023E.
• Revenue potential for telescopic forklift at RMB 1bn in 2023E, doubling in 2024E.
• Electrification of reach stackers and empty container handlers progressing well.
• Gross margin for large port machinery improving.

Product Highlights

• Telescopic forklift: Global demand high in Europe and US, cost advantages with plans for new factory in Turkey.
• Electrification: Electric machines offer lower operating costs, driving ASP growth.
• Large port machinery: Strong backlog exceeding RMB 3bn, improved margins, key orders from Maersk.

Financial Performance

• Projected revenue growth from 2023E onwards, driven by market expansion.
• Improved profitability with rising margins and EPS.
• Balance sheet shows healthy equity and liquidity metrics.

Valuation

• Analyst recommends BUY with target price HK$162.
• Valuation based on 19x 2023E P/E; 33% earnings CAGR expected.
• P/B and P/E bands indicate upside potential.

Risks

• Weakness in mining activities, product development below expectations, raw material cost increases.