CICC released a research report stating that it is covering SANY International (00631) for the first time, giving it an "outperform" rating.

The report estimates the company's EPS for 2024-2025 to be 0.63 yuan and 0.70 yuan, respectively, with a CAGR of 8.0%, and a target price of 5.7 Hong Kong dollars.

The market perceives that the company's downstream industries are relatively mature, limiting its growth potential.

However, CICC believes that the company has a strong technological research and development advantage, which allows it to continuously explore new customer needs and create and promote new products based on these needs, thus creating a new growth curve for itself.

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The main points of CICC are as follows: Mining Equipment: The domestic coal machinery business has a solid foundation, and the overseas mining truck business is driving a new growth curve.

In 2023, the company's coal machinery business ranked fourth in scale in China, and CICC believes that the company's domestic coal machinery business is expected to continue its share advantage and follow the changes in industry demand.

In terms of overseas markets, the company's overseas mining truck business has achieved breakthroughs in recent years, and the increase in market share is still the main trend for the future.

CICC believes that the company's high cost-performance mining truck products are expected to open up space in overseas markets and contribute to new growth momentum.

Logistics Equipment: The global market share of large port machinery is stable, and the electrification trend of small port machinery drives business growth.

The market size and competitive landscape of the large port machinery market are relatively stable every year, and the company is expected to benefit from the rise in industry replacement demand.

There are many types of small port machinery products, and the market is complex.

CICC estimates that the global market size in 2023 is about 20-30 billion yuan.

The company has a high market share in the domestic market, and there is still a large room for improvement in the overseas market share.

With the electrification trend of small port machinery becoming more apparent in recent years, CICC believes that the company is expected to increase its market share and drive business growth with its high-quality electrified products and thoughtful services.

Oil and Gas Equipment and Emerging Business Equipment: Moving forward, laying out medium and long-term growth momentum.

Through continuous expansion, the company's oil and gas complete fracturing equipment has grown from an initial entrant to a leading equipment enterprise in the domestic market in recent years.

CICC predicts that in the future, it is expected to continue to break through the overseas market while consolidating its domestic market share.

At the same time, the company is continuously laying out new businesses such as photovoltaic, lithium battery, and hydrogen energy.

With the development of the industry and the company's business layout, it is expected to contribute to the company's medium and long-term growth momentum.

Strong technological research and development, extensive sales channels, and high-quality after-sales service create a virtuous cycle, continuously breaking through the ceiling.

The company continues to explore customer pain points in various fields, relying on its strong technological research and development capabilities to continuously develop new products.

Through the parent company and its own extensive sales channels and high-quality after-sales service, it can reach the customer terminal faster and cultivate customer stickiness.

CICC believes that this is expected to form a virtuous cycle, helping the company to continuously explore new growth points and break through the ceiling.

Potential Catalysts: The recovery of downstream demand exceeds expectations, and the expansion of overseas markets exceeds expectations.

Risks: Overseas expansion is not up to expectations, fluctuations in commodity prices affect costs, market competition intensifies, the expansion of new businesses is not up to expectations, downstream demand is not up to expectations, and goodwill impairment risk.