Sany Heavy Equipment 9M profit falls on lower government grants
Sany Heavy Equipment 9M profit falls on lower government grants
Overview
China mining equipment maker's nine-month revenue rose 22% yr/yr
Net profit attributable to owners fell 2.6% for the nine-month period
Net profit decline driven by higher raw material costs and lower government grants
Outlook
Company plans to expand international presence and optimise business and product structure
Sany Heavy Equipment aims to strengthen cost control and lean operations
Company expects overseas sales revenue to sustain rapid growth
Result Drivers
RAW MATERIAL COSTS - Co said higher prices for silicon wafers, silicon materials and battery cells reduced gross profit margin
LOWER GOVERNMENT GRANTS - Co said net profit decline was partly due to reduced government grants
MINING, LOGISTICS AND OVERSEAS SALES – Co said mining and logistics equipment revenue, as well as overseas sales, continued to grow rapidly
Company press release: Full Story
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
9M Revenue |
| RMB 22.17 bln |
|
9M Net Income Attributable |
| RMB 1.66 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 54.6% above its October 29 closing price of HK$7.76
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago
Reuters Recommended Reads
Oct 29 - Geely Automobile nine-month revenue up 13% on exports, product mix
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Oct 27 - Porsche's nine-month revenue falls 5.9% amid lower deliveries
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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