Highest 3Q26 earnings growth among major players
三一重工(600031)
SANY Heavy(SANY)’s net profit in3Q26grew20%YoY to RMB2.3bn,withthe growth rate accelerating from17%YoY in2Q26.The strong earningsgrowth was driven by revenue growth of17%YoY(Overseas:+20%,China:+12%)and0.4ppt YoY expansion of gross margin.Most importantly,SANY’searnings growth in3Q26was the highest among major construction machineryplayers.We continue to like SANY’s solid execution in the overseas market.Maintain BUY rating with unchanged A/H TP of RMB26.2/HK$27.5(unchanged24x2026E P/E for A-share,equivalent to0.5SD above the average of20xsince2017,to reflect the earnings upcycle).Our H-share TP is based on10%H/A discount.
Post-results conference call:SANY will host investor call at15:00(HKT)today.
Key risks:(1)Slowdown of overseas demand;(2)further appreciation ofRMB rate;(3)decline in mining capex.