30 Oct 2026 CMB International Global Markets | Equity Research | Company Update

SANY Heavy (6031 HK/600031 CH)

Highest 3Q26 earnings growth among major players

SANY Heavy (SANY)’s net profit in 3Q26 grew 20% YoY to RMB2.3bn, with the growth rate accelerating from 17% YoY in 2Q26. The strong earnings growth was driven by revenue growth of 17% YoY (Overseas: +20%, China: +12%) and 0.4ppt YoY expansion of gross margin. Most importantly, SANY’s earnings growth in 3Q26 was the highest among major construction machinery players. 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 (unchanged 24x 2026E P/E for A-share, equivalent to 0.5SD above the average of 20x since 2017, to reflect the earnings upcycle). Our H-share TP is based on 10% H/A discount.

 Post-results conference call: SANY will host investor call at 15:00 (HKT)

today.

 Key risks: (1) Slowdown of overseas demand; (2) further appreciation of

RMB rate; (3) decline in mining capex.

SANY Heavy (6031 HK/600031 CH) - Highest 3Q26 earnings growth among major players

China Capital Goods

12-mth Price Performance

Earnings Summary - 6031 HK

(YE 31 Dec) FY24A FY25A FY26E FY27E FY28E Revenue (RMB mn) 78,383 89,700 104,722 116,500 128,177

YoY growth (%) 5.9 14.4 16.7 11.2 10.0 Adjusted net profit (RMB mn) 5,955.6 8,408.0 10,026.3 12,095.5 13,216.4 EPS (Reported) (RMB) 0.70 0.95 1.09 1.32 1.44

YoY growth (%) 31.7 35.5 14.6 20.6 9.3 Consensus EPS (RMB) na 0.00 1.16 1.47 1.77 P/E (x) 19.9 14.7 12.8 10.6 9.7 P/B (x) 1.6 1.5 1.3 1.2 1.2 Yield (%) 2.6 3.4 3.9 4.7 5.1 Net gearing (%) (14.5) (38.0) (39.1) (39.2) (44.4) Source: Company data, Bloomberg, CMBIGM estimates

Source: FactSet

Related reports: Capital Goods - Decent export growth of earth-moving machinery in Sep; Domestic excavator sales improved – 13 Oct 2026 (link)

Capital Goods - Key takeaways from investor calls after sector pullback – 17 Sep 2026 (link)

PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE MORE REPORTS FROM BLOOMBERG: RESP CMBR OR http://www.cmbi.com.hk

1

Figure 1: SANY Heavy’s 3Q26 financials

(RMB mn) 1Q25 1Q26 Chg YoY 2Q25 2Q26 Chg YoY 3Q25 3Q26 Chg YoY Total revenue 21,177 24,147 14.0% 23,603 29,359 24.4% 21,324 24,907 16.8% Cost of sales -15,447 -17,469 13.1% -16,956 -21,088 24.4% -15,313 -17,780 16.1% Gross profit 5,730 6,678 16.5% 6,648 8,272 24.4% 6,011 7,126 18.6% Other income -129 -126 -3.0% -150 -198 32.1% -104 -128 23.6% S&D expenses -1,350 -1,651 22.3% -1,578 -1,845 16.9% -1,584 -1,961 23.8% Administrative expenses -639 -637 -0.4% -618 -663 7.2% -641 -738 15.2%

• R&D expense -1,058 -1,133 7.1% -1,104 -1,207 9.3% -1,224 -1,356 10.8% Fair value change -299 349 n/a -377 135 n/a 203 20 -89.9% Asset impairment -165 -208 26.4% -277 -545 96.6% -162 -110 -31.9% EBIT 2,089 3,273 56.7% 2,543 3,949 55.3% 2,499 2,854 14.2% Net finance income/(expense) 370 -798 n/a 487 -852 n/a -235 -613 161.1% Other gains/(losses) 421 349 -17.1% 192 631 228.6% 74 360 387.2% Share of profit of JV & associates -7 77 n/a -19 35 n/a -16 63 n/a Pretax profit 2,874 2,901 1.0% 3,203 3,763 17.5% 2,322 2,664 14.7% Income tax -371 -377 1.6% -420 -562 33.8% -369 -333 -9.6% After tax profit 2,502 2,524 0.9% 2,783 3,201 15.0% 1,954 2,331 19.3% MI -33 -43 30.9% -38 9 n/a -32 -17 -46.9% Net profit 2,469 2,481 0.5% 2,745 3,210 16.9% 1,922 2,314 20.4%

Key ratios: ppt ppt ppt Gross margin 27.1% 27.7% 0.6 28.2% 28.2% 0.0 28.2% 28.6% 0.4

• S&D expense ratio 6.4% 6.8% 0.5 6.7% 6.3% -0.4 7.4% 7.9% 0.4 Administrative expense ratio 3.0% 2.6% -0.4 2.6% 2.3% -0.4 3.0% 3.0% 0.0 R&D expense ratio 5.0% 4.7% -0.3 4.7% 4.1% -0.6 5.7% 5.4% -0.3 Net profit margin 11.8% 10.5% -1.4 11.8% 10.9% -0.9 9.2% 9.4% 0.2 Effective tax rate 12.9% 13.0% 0.1 13.1% 14.9% 1.8 15.9% 12.5% -3.4

Source: Company data, CMBIGM

Figure 2: Key assumptions for SANY Heavy

(RMB mn) 2023 2024 2025 2026E 2027E 2028E Revenue

Concrete machinery 15,315 14,368 15,738 18,189 20,372 22,409 Excavator 27,636 30,374 34,544 41,352 46,727 51,867 Crane machinery 12,999 13,115 15,563 16,623 18,285 20,113 Piling machinery 2,085 2,076 2,820 3,753 4,053 4,256 Earth moving machinery 2,485 3,001 3,757 4,173 4,507 4,868 Other machinery 11,001 12,897 14,849 17,819 19,601 21,561 Revenue (construction machinery) 71,521 75,831 87,270 101,909 113,545 125,074 Interest income from financing 797 610 468 673 706 741 Other business 1,700 1,942 1,961 2,141 2,248 2,361 Total revenue 74,019 78,383 89,700 104,722 116,500 128,177

Revenue growth

Concrete machinery 1.6% -6.2% 9.5% 15.6% 12.0% 10.0% Excavator -22.7% 9.9% 13.7% 19.7% 13.0% 11.0% Crane machinery 2.6% 0.9% 18.7% 6.8% 10.0% 10.0% Piling machinery -32.0% -0.4% 35.8% 33.1% 8.0% 5.0% Earth moving machinery -19.3% 20.7% 25.2% 11.1% 8.0% 8.0% Other machinery 30.2% 17.2% 15.1% 20.0% 10.0% 10.0% Revenue (construction machinery) 7.0% 6.0% 15.1% 16.8% 11.4% 10.2% Interest income from financing -0.8% -23.5% -23.2% 43.6% 5.0% 5.0% Other business -11.3% 14.2% 1.0% 9.2% 5.0% 5.0% Total revenue 6.8% 5.9% 14.4% 16.7% 11.2% 10.0%

Gross margin

Concrete machinery 22.3% 20.5% 20.2% 21.0% 21.5% 21.5% Excavator 33.2% 31.8% 34.2% 35.0% 34.2% 34.0% Crane machinery 24.7% 27.2% 29.0% 28.0% 28.0% 28.0% Piling machinery 34.1% 32.8% 32.9% 36.4% 34.0% 34.0% Earth moving machinery 30.0% 27.5% 28.7% 28.5% 28.5% 28.5% Other machinery 23.4% 19.4% 17.9% 16.0% 16.0% 16.0% Gross margin (construction machinery) 27.7% 26.6% 27.7% 27.8% 27.5% 27.5% Interest income from financing 52.7% 58.0% 64.9% 59.0% 59.0% 59.0% Other business 27.1% 18.8% 20.3% 24.0% 24.0% 24.0% Blended gross margin 28.0% 26.7% 27.7% 27.9% 27.7% 27.6%

Source: Company data, CMBIGM estimates

Valuation

Figure 3: SANY-A’s P/E band

RMB

42x

50

45

33x

40

35

30

24x

25

20

15x

15

10

6x

5

0

Sept-19

Aug-18

Aug-12

Aug-15

Aug-22

Aug-25

Sept-13

Sept-16

Sept-23

Mar-13

Mar-17

Mar-20

Mar-23

Mar-26

Feb-12

Feb-16

Feb-19

Feb-22

Feb-25

Oct-20

Jul-17

Jun-13

Jan-15

Jun-16

Jan-18

Jun-20

Jan-21

Jun-23

Jan-24

Jun-26

May-12

May-15

May-19

May-22

May-25

Jul-14

Jul-21

Jul-24

Oct-11

Oct-14

Oct-17

Oct-24

Apr-14

Apr-18

Apr-21

Apr-24

Nov-12

Dec-13

Nov-15

Dec-16

Nov-18

Dec-19

Nov-21

Dec-22

Nov-25

Source: Company data, Bloomberg, CMBIGM estimates Note: 12M forward P/E on daily basis

Figure 4: SANY-A’s P/B band

RMB

5.5x

50

4.5x

45

40

3.5x

35

30

2.5x

25

20

1.5x

15

10

5

0

May-12

May-15

May-19

May-22

May-25

Sept-23

Aug-12

Aug-15

Aug-18

Aug-22

Aug-25

Sept-13

Sept-16

Sept-19

Mar-13

Mar-17

Mar-20

Mar-23

Mar-26

Feb-12

Feb-16

Feb-19

Feb-22

Feb-25

Jun-13

Jan-15

Jun-16

Jan-18

Jun-20

Jan-21

Jun-23

Jan-24

Jun-26

Oct-20

Apr-14

Apr-18

Apr-21

Apr-24

Jul-14

Jul-17

Jul-21

Jul-24

Oct-11

Oct-14

Oct-17

Oct-24

Nov-12

Dec-13

Nov-15

Dec-16

Nov-18

Dec-19

Nov-21

Dec-22

Nov-25

Source: Company data, Bloomberg, CMBIGM estimates Note: 12M forward P/B on daily basis

Financial Summary

INCOME STATEMENT 2023A 2024A 2025A 2026E 2027E 2028E

YE 31 Dec (RMB mn) Revenue 74,019 78,383 89,700 104,722 116,500 128,177 Cost of goods sold (53,312) (57,473) (64,825) (75,458) (84,264) (92,804) Gross profit 20,707 20,910 24,875 29,264 32,235 35,373 Operating expenses (16,394) (15,261) (16,232) (17,993) (20,369) (22,414) Selling expense (6,218) (5,464) (6,415) (7,331) (7,922) (8,716) Admin expense (2,651) (2,996) (2,589) (3,142) (3,495) (3,845) R&D expense (5,865) (5,381) (5,033) (5,655) (6,757) (7,434) Others (1,660) (1,420) (2,195) (1,865) (2,195) (2,418) Operating profit 4,313 5,649 8,643 11,272 11,866 12,959 Share of (losses)/profits of associates/JV 50 58 45 203 185 191 EBITDA 7,201 8,896 11,833 14,604 15,411 16,507 Depreciation 2,888 3,247 3,190 3,333 3,544 3,548 Interest income 980 1,009 1,149 (406) 1,549 1,753 Interest expense (517) (1,211) (837) (763) (557) (559) Net Interest income/(expense) 463 (202) 312 (1,169) 992 1,195 Others 491 1,402 907 1,300 1,000 1,000 Pre-tax profit 5,317 6,908 9,907 11,606 14,043 15,345 Income tax (710) (815) (1,420) (1,509) (1,826) (1,995) Minority interest (79) (137) (80) (71) (122) (133) Adjusted net profit 4,527 5,956 8,408 10,026 12,096 13,216

BALANCE SHEET 2023A 2024A 2025A 2026E 2027E 2028E

YE 31 Dec (RMB mn) Current assets 97,633 101,505 124,298 134,068 144,044 157,106 Cash & equivalents 18,072 20,383 38,451 42,759 45,773 54,413 Account receivables 24,165 25,517 25,540 30,694 32,503 36,326 Inventories 19,768 19,948 22,527 22,955 27,835 28,611 Other current assets 35,629 35,658 37,779 37,660 37,934 37,756 Non-current assets 53,569 50,640 49,001 52,144 51,727 53,232 PP&E 23,453 22,369 21,159 20,847 20,328 19,708 Deferred income tax 3,070 3,577 3,982 3,982 3,982 3,982 Investment in JVs & assos 2,401 2,425 2,489 2,591 2,683 2,779 Intangibles 4,832 4,615 4,235 3,894 3,540 3,182 Goodwill 50 48 41 41 41 41 Financial assets at FVTPL 0 0 0 0 0 0 Other non-current assets 19,763 17,606 17,095 20,789 21,154 23,541 Total assets 151,202 152,145 173,299 186,212 195,772 210,338

Current liabilities 54,415 63,669 71,856 76,320 78,675 85,939 Short-term borrowings 9,551 9,461 12,776 12,876 12,976 13,056 Account payables 22,693 28,654 36,064 40,428 42,682 49,867 Tax payable 1,063 1,224 1,665 1,665 1,665 1,665 Other current liabilities 21,109 24,330 21,351 21,351 21,351 21,351 Non-current liabilities 27,614 15,474 12,011 12,011 12,011 12,011 Long-term borrowings 23,556 11,556 7,853 7,853 7,853 7,853 Other non-current liabilities 4,059 3,918 4,158 4,158 4,158 4,158 Total liabilities 82,029 79,143 83,868 88,331 90,686 97,951

Total shareholders equity 68,040 71,924 88,331 96,710 103,793 110,961 Minority interest 1,133 1,078 1,100 1,171 1,293 1,427 Total equity and liabilities 151,202 152,145 173,299 186,212 195,772 210,338

CASH FLOW 2023A 2024A 2025A 2026E 2027E 2028E

YE 31 Dec (RMB mn) Operating Profit before taxation 5,317 6,908 9,907 11,606 14,043 15,345 Depreciation & amortization 2,888 3,247 3,190 3,333 3,544 3,548 Tax paid (710) (815) (1,420) (1,509) (1,826) (1,995) Change in working capital (3,067) 4,910 7,338 (4,793) (5,072) 375 Others 1,281 565 960 966 (1,177) (1,386) Net cash from operations 5,708 14,814 19,975 9,602 9,513 15,887

Investing Capital expenditure (4,128) (2,685) (2,246) (2,600) (2,600) (2,500) Acquisition of subsidiaries/ investments (92) (11) 19 0 0 0

Others 1,527 1,538 (15,682) (384) 1,572 1,779 Net cash from investing (2,694) (1,158) (17,909) (2,984) (1,028) (721)

Financing Dividend paid (1,359) (1,862) (5,648) (1,647) (5,013) (6,048) Net borrowings (2,049) (6,884) (4,040) 100 100 80 Proceeds from share issues 0 573 14,497 0 0 0 Others (4,122) (2,107) (3,233) (763) (557) (559) Net cash from financing (7,530) (10,279) 1,576 (2,310) (5,470) (6,526)

Net change in cash Cash at the beginning of the year 21,343 18,072 20,383 38,451 42,759 45,773 Exchange difference 1,244 (1,066) 14,426 0 0 0 Cash at the end of the year 18,072 20,383 38,451 42,759 45,773 54,413

GROWTH 2023A 2024A 2025A 2026E 2027E 2028E

YE 31 Dec

Revenue (8.4%) 5.9% 14.4% 16.7% 11.2% 10.0% Gross profit 5.3% 1.0% 19.0% 17.6% 10.2% 9.7% Operating profit 71.7% 31.0% 53.0% 30.4% 5.3% 9.2% EBITDA 46.8% 23.5% 33.0% 23.4% 5.5% 7.1% Adj. net profit 6.0% 31.5% 41.2% 19.2% 20.6% 9.3%

PROFITABILITY 2023A 2024A 2025A 2026E 2027E 2028E

YE 31 Dec

Gross profit margin 28.0% 26.7% 27.7% 27.9% 27.7% 27.6% Operating margin 5.8% 7.2% 9.6% 10.8% 10.2% 10.1% EBITDA margin 9.7% 11.3% 13.2% 13.9% 13.2% 12.9% Adj. net profit margin 6.1% 7.6% 9.4% 9.6% 10.4% 10.3%

GEARING/LIQUIDITY/ACTIVITIES 2023A 2024A 2025A 2026E 2027E 2028E

YE 31 Dec

Net debt to equity (x) 0.1 (0.1) (0.4) (0.4) (0.4) (0.4) Current ratio (x) 1.8 1.6 1.7 1.8 1.8 1.8 Receivable turnover days 181.4 174.7 155.8 147.0 149.0 147.0 Inventory turnover days 135.2 126.1 119.6 110.0 110.0 111.0 Payable turnover days 176.6 163.0 182.2 185.0 180.0 182.0

VALUATION 2023A 2024A 2025A 2026E 2027E 2028E

YE 31 Dec

P/E 26.2 19.9 14.7 12.8 10.6 9.7 P/B 1.7 1.6 1.5 1.3 1.2 1.2 Div yield (%) 1.6 2.6 3.4 3.9 4.7 5.1

Source: Company data, CMBIGM estimates. Note: The calculation of net cash includes financial assets.

Disclosures & Disclaimers

Analyst Certification

The research analyst who is primary responsible for the content of this research report, in whole or in part, certifies that with respect to the securities or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer; and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report. Besides, the analyst confirms that neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and Futures Commission) (1) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to the date of issue of this report; (2) will deal in or trade in the stock(s) covered in this research report 3 business days after the date of issue of this report; (3) serve as an officer of any of the Hong Kong listed companies covered in this report; and (4) have any financial interests in the Hong Kong listed companies covered in this report.

CMBIGM Ratings

BUY : Stock with potential return of over 15% over next 12 months HOLD : Stock with potential return of +15% to -10% over next 12 months SELL : Stock with potential loss of over 10% over next 12 months NOT RATED : Stock is not rated by CMBIGM

OUTPERFORM : Industry expected to outperform the relevant broad market benchmark over next 12 months MARKET-PERFORM : Industry expected to perform in-line with the relevant broad market benchmark over next 12 months UNDERPERFORM : Industry expected to underperform the relevant broad market benchmark over next 12 months

CMB International Global Markets Limited

Address: 45/F, Champion Tower, 3 Garden Road, Hong Kong, Tel: (852) 3900 0888 Fax: (852) 3900 0800 CMB International Global Markets Limited (“CMBIGM”) is a wholly owned subsidiary of CMB International Capital Corporation Limited (a wholly owned subsidiary of China Merchants Bank)

Important Disclosures

There are risks involved in transacting in any securities. The information contained in this report may not be suitable for the purposes of all investors. CMBIGM does not provide individually tailored investment advice. This report has been prepared without regard to the individual investment objectives, financial position or special requirements. Past performance has no indication of future performance, and actual events may differ materially from that which is contained in the report. The value of, and returns from, any investments are uncertain and are not guaranteed and may fluctuate as a result of their dependence on the performance of underlying assets or other variable market factors. CMBIGM recommends that investors should independently evaluate particular investments and strategies, and encourages investors to consult with a professional financial advisor in order to make their own investment decisions. This report or any information contained herein, has been prepared and distributed in Hong Kong by CMBIGM under its regulatory framework for the regulated activities licensed and regulated by the Securities and Futures Commission of Hong Kong. The report is solely for the purpose of supplying information to the clients of CMBIGM or its affiliate(s) to whom it is distributed. This report is not and should not be construed as an offer or solicitation to buy or sell any security or any interest in securities or enter into any transaction. Neither CMBIGM nor any of its affiliates, shareholders, agents, consultants, directors, officers or employees shall be liable for any loss, damage or expense whatsoever, whether direct or consequential, incurred in relying on the information contained in this report. Anyone making use of the information contained in this report does so entirely at their own risk. The information and contents contained in this report are based on the analyses and interpretations of information believed to be publicly available and reliable. CMBIGM has exerted every effort in its capacity to ensure, but not to guarantee, their accuracy, completeness, timeliness or correctness. CMBIGM provides the information, advices and forecasts on an "AS IS" basis. The information and contents are subject to change without notice. CMBIGM may issue other publications having information and/ or conclusions different from this report. These publications reflect different assumption, point-of-view and analytical methods when compiling. CMBIGM may make investment decisions or take proprietary positions that are inconsistent with the recommendations or views in this report. CMBIGM may have a position, make markets or act as principal or engage in transactions in securities of companies referred to in this report for itself and/or on behalf of its clients from time to time. Investors should assume that CMBIGM does or seeks to have investment banking or other business relationships with the companies in this report. As a result, recipients should be aware that CMBIGM may have a conflict of interest that could affect the objectivity of this report and CMBIGM will not assume any responsibility in respect thereof. This report is for the use of intended recipients only and this publication, may not be reproduced, reprinted, sold, redistributed, directly or indirectly, to any other person, published in whole or in part for any purpose without prior written consent of CMBIGM. Additional information on recommended securities is available upon request. If there is any inconsistency between the Chinese and English versions of this Important Disclosure, the English version shall prevail.

For recipients of this document in the United Kingdom This report has been provided only to persons (I)falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended from time to time)(“The Order”) or (II) are persons falling within Article 49(2) (a) to (d) (“High Net Worth Companies, Unincorporated Associations, etc.,) of the Order, and may not be provided to any other person without the prior written consent of CMBIGM.

For recipients of this document in the United States CMBIGM is not a registered broker-dealer in the United States. As a result, CMBIGM is not subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. The research analyst who is primary responsible for the content of this research report is not registered or qualified as a research analyst with the Financial Industry Regulatory Authority (“FINRA”). The analyst is not subject to applicable restrictions under FINRA Rules intended to ensure that the analyst is not affected by potential conflicts of interest that could bear upon the reliability of the research report. This report is intended for distribution in the United States solely to "major US institutional investors", as defined in Rule 15a-6 under the US, Securities Exchange Act of 1934, as amended, and may not be furnished to any other person in the United States. Each major US institutional investor that receives a copy of this report by its acceptance hereof represents and agrees that it shall not distribute or provide this report to any other person. Any U.S. recipient of this report wishing to effect any transaction to buy or sell securities based on the information provided in this report should do so only through a U.S.-registered broker-dealer.

For recipients of this document in Singapore This report is distributed in Singapore by CMBI (Singapore) Pte. Limited (CMBISG) (Company Regn. No. 201731928D), an Exempt Financial Adviser as defined in the Financial Advisers Act (Cap. 110) of Singapore and regulated by the Monetary Authority of Singapore. CMBISG may distribute reports produced by its respective foreign entities, affiliates or other foreign research houses pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, as defined in the Securities and Futures Act (Cap. 289) of Singapore, CMBISG accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact CMBISG at +65 6350 4400 for matters arising from, or in connection with the report.