External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Thematic (Sector/Industry)

<ul><li>What is new? The 24% YoY decline in excavator sales in 2022 (for the industry as a whole) is largely in line with our expectation.</li><li>Meanwhile, Jiangsu Hengli’s scheduled production of excavator cylinders in Jan 2023 drops &gt;20% YoY, likely due to (1) the pandemic impact and (2) base effect of CNY.</li><li>On the back of reopening and easing liquidity, we expect demand for excavator to pick up moderately in Feb/Mar and we maintain our forecast of 10% YoY increase in the industry demand in 2023E (China: +15%, export: +5%).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

What is new? The 24% YoY decline in excavator sales in 2022 (for the industry as a whole) is largely in line with our expectation.Meanwhile, Jiangsu Hengli’s scheduled production of excavator cylinders in Jan 2023 drops &gt;20% YoY, likely due to (1) the pandemic impact and (2) base effect of CNY.On the back of reopening and easing liquidity, we expect demand for excavator to pick up moderately in Feb/Mar and we maintain our forecast of 10% YoY increase in the industry demand in 2023E (China: +15%, export: +5%).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Construction Machinery – Prefer AWP to excavator in the near term

Equity Bottom-Up

<ul><li>We believe the expansion to lithium battery equipment manufacturing will serve as an important growth driver for SANYI.</li><li>We believe (1) the existing relationship with lithium battery manufacturers and (2) the capability to produce in-house components will enable SANYI to break the entry barrier in the battery equipment space and gain market share over the coming years.</li><li>SANYI set an ambitious revenue target of RMB3bn in 2025E. We have yet to factor in this potential contribution in our model as we are awaiting further operating data. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We believe the expansion to lithium battery equipment manufacturing will serve as an important growth driver for SANYI.We believe (1) the existing relationship with lithium battery manufacturers and (2) the capability to produce in-house components will enable SANYI to break the entry barrier in the battery equipment space and gain market share over the coming years.SANYI set an ambitious revenue target of RMB3bn in 2025E. We have yet to factor in this potential contribution in our model as we are awaiting further operating data. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

SANY International (631 HK) – Expansion to new energy equipment sector with an ambitious target

<ul><li>In our last report dated 17 October, we highlighted a list of 21 long ideas.</li><li>The basket (equal weighted) of these 21 stocks underperformed MSCI China index by 5.4ppt, delivering 0.2% return (vs MSCI China 5.6%).</li><li>China Meidong Auto and Innovent Biologics delivered over 20% of return, and 4 of our 21 long ideas outperformed the benchmark.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

In our last report dated 17 October, we highlighted a list of 21 long ideas.The basket (equal weighted) of these 21 stocks underperformed MSCI China index by 5.4ppt, delivering 0.2% return (vs MSCI China 5.6%).China Meidong Auto and Innovent Biologics delivered over 20% of return, and 4 of our 21 long ideas outperformed the benchmark.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CMBI Research Focus List (November Edition) – Our best high conviction stock ideas

<ul><li>Road header (above our expectation): Sales volume in 9M22 grew &gt;50%. ASP is on the rise (currently RMB3.4mn/unit), driven by larger-size and more intelligent machines.</li><li>The segment revenue grew ~67% YoY to RMB2.28bn in 9M22. SANYI targets to achieve RMB3.2bn for the full year.</li><li>We estimate the segment revenue grew ~70% YoY to RMB2.2bn, driven by strong growth of hydraulic support product. SANYI targets to achieve RMB2.6bn/3.0bn in 2022E/23E.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Road header (above our expectation): Sales volume in 9M22 grew &gt;50%. ASP is on the rise (currently RMB3.4mn/unit), driven by larger-size and more intelligent machines.The segment revenue grew ~67% YoY to RMB2.28bn in 9M22. SANYI targets to achieve RMB3.2bn for the full year.We estimate the segment revenue grew ~70% YoY to RMB2.2bn, driven by strong growth of hydraulic support product. SANYI targets to achieve RMB2.6bn/3.0bn in 2022E/23E.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

SANY International (631 HK) – Key Takeaways from Post-Results Call and NDR

<ul><li>SANYI delivered impressive core net profit growth of 43% YoY in 2Q22.</li><li>The surprise came from a strong recovery of gross margin, which expanded 3.8ppt YoY and 5.8ppt QoQ to 26.9%, the highest level since 3Q21. </li><li>Looking ahead, we expect the decline in freight rate and steel price will continue to drive margin improvement in 2H22E. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

SANYI delivered impressive core net profit growth of 43% YoY in 2Q22.The surprise came from a strong recovery of gross margin, which expanded 3.8ppt YoY and 5.8ppt QoQ to 26.9%, the highest level since 3Q21. Looking ahead, we expect the decline in freight rate and steel price will continue to drive margin improvement in 2H22E. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

SANY International (631 HK) – Beat expectation: 2Q22 core profit +43% YoY on strong margin recovery

China

Sany Heavy Equipment International Holdings Co Ltd. manufactures coal mining equipment, including roadheaders.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Sany Heavy Equipment (631 HK)

China Construction Machinery – Prefer AWP to excavator in the near term

What is new? The 24% YoY decline in excavator sales in 2022 (for the industry as a whole) is largely in line with our expectation.

CMB International

SANY International (631 HK) – Expansion to new energy equipment sector with an ambitious target

SANYI set an ambitious revenue target of RMB3bn in 2025E. We have yet to factor in this potential contribution in our model as we are awaiting...

CMB International

CMBI Research Focus List (November Edition) – Our best high conviction stock ideas

In our last report dated 17 October, we highlighted a list of 21 long ideas.The basket (equal weighted) of these 21 stocks underperformed MSCI...

CMB International

SANY International (631 HK) – Key Takeaways from Post-Results Call and NDR

Road header (above our expectation): Sales volume in 9M22 grew >50%. ASP is on the rise (currently RMB3.4mn/unit), driven by larger-size and more...

CMB International

SANY International (631 HK) – Beat expectation: 2Q22 core profit +43% YoY on strong margin recovery

The surprise came from a strong recovery of gross margin, which expanded 3.8ppt YoY and 5.8ppt QoQ to 26.9%, the highest level since 3Q21.

CMB International

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)