CICC International: Lower SANY INT'L (00631) target price to 7 Hong Kong dollars, attractive valuation, rating "outperform the market"

Bank of China International released a research report stating that after a difficult 2024, it is expected that SANY INT'L (00631) will experience a recovery and resume growth in the future. Sany Heavy Industry's solid balance sheet and consistent cash flow make its current valuation (forecasted P/B ratio of 1.2 times in 2025) attractive to the bank, considering its trading history, track record, and strong management team aligned with the interests of minority shareholders. The target price has been lowered from 8.2 Hong Kong dollars to 7 Hong Kong dollars, with a rating of "outperform the market". The report pointed out that the company maintained a healthy momentum in overseas markets last year, achieving an 8% revenue growth, while profit margins increased. The bank believes that this trend will continue in 2025. After a 1% decline in domestic business in 2024, growth is expected in 2025, with logistics equipment and new business accelerating, while mining equipment stabilizes.