China's Sany Heavy Equipment H1 revenue rises on mining, international sales strength
China's Sany Heavy Equipment H1 revenue rises on mining, international sales strength
Overview
China heavy equipment maker's half-year revenue rose 20.5% yr/yr to RMB14.75 bln
Profit attributable to owners fell 5.9% yr/yr to RMB1.22 bln
Profit margin before tax declined to 10.6% from 14.0% a year earlier
Outlook
Company did not provide specific guidance or outlook for the current or future periods
Result Drivers
MINING AND PORT EQUIPMENT – Revenue growth was driven by higher mining-equipment and large-port-machinery sales and international expansion
LOWER-MARGIN SALES MIX – Gross margin fell 1.6 percentage points to 22.1% as lower-margin products represented a larger share of revenue
LOWER GOVERNMENT GRANTS – Other income and gains fell 11.5% to RMB525.7 mln, mainly due to reduced bank interest income and government grants
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| RMB 14.75 bln |
|
H1 Net Income Attributable |
| RMB 1.22 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the mining support services & equipment peer group is "buy"
Wall Street's median 12-month price target for Sany Heavy Equipment International Holdings Company Ltd is HK$12.00, about 37.1% above its August 26 closing price of HK$8.75
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago
Reuters Recommended Reads
Aug 25 - China's Dongfang Electric H1 revenue inches up on strength in energy equipment business
Aug 25 - China's CIMC Enric H1 profit falls 8% as margin narrows
Aug 24 - China's Haitian International H1 revenue inches up despite lower overseas sales
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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