CITIC SEC: Maintains Sany Heavy Industry (06031) H-share target price at HK$28, maintains "Buy" rating.

CITIC SEC released a research report maintaining the H-share target price of Sany Heavy Industry (06031) at HK$28 and the A-share target price at RMB27, both with a "Buy" rating. The bank maintained its 2026/2027/2028 net profit attributable to parent forecasts of RMB10.9 billion/14.3 billion/18.2 billion, with the H-share target price corresponding to 23x 2026 P/E. In the first half of 2026, the company achieved operating revenue of RMB53.31 billion, up 19.7% year-on-year; net profit attributable to parent was RMB5.69 billion, up 9.1% year-on-year. In the second quarter, operating revenue was RMB29.26 billion, up 24.6% year-on-year; net profit attributable to parent was RMB3.21 billion, up 16.9% year-on-year. In the first half, the company's revenue grew rapidly, with growth achieved in both domestic and overseas markets; overseas revenue rose 21.8% year-on-year, accounting for 61.3% of main business revenue. Profitability was disturbed by exchange losses from RMB appreciation and increased credit impairment, but overseas gross margin remained impressive at 32.5%, up 1.3 percentage points year-on-year. Looking ahead to the second half, CITIC SEC believes that domestic construction machinery demand continues to recover moderately, the company's overseas channels, services and localized manufacturing continue to improve, and there is still a foundation for global share gains; with revenue scale growth, product mix improvement and deepened lean operations, the company's medium- to long-term profitability is expected to continue improving.