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after the stock price plummeted due to a group reduction in holdings by directors, supervisors and senior managers, sany heavy industry received good news overnight.

on the evening of september 9, sany heavy industry issued the "announcement on the company's recent sales situation", announcing the company's recent sales situation. in august, the domestic sales volume of small excavators increased by 51% year-on-year. in the first eight months, the company's sales in africa increased by more than 60% year-on-year. all sales data are very impressive.

it is worth noting that china securities journal reporters found that sany heavy industry rarely made separate announcements on sales. on september 9, affected by the news of shareholders and directors, supervisors and senior executives reducing their holdings, sany heavy industry opened low and fell sharply by 5.52% at the close of trading, with a turnover of 1.366 billion yuan and a latest market value of 129.2 billion yuan.

sany heavy industry rarely releases sales status

on the evening of september 9, sany heavy industry issued a rare "announcement on the company's recent sales situation", and various sales data, especially overseas sales, were very impressive.

first, the domestic market has entered a stable upward channel. in august 2024, the company's domestic sales of small excavators increased by 51% year-on-year, medium excavators increased by 44%, and large excavators remained the same; the decline in non-excavation products such as concrete machinery and lifting machinery narrowed. among them, the company's small excavator products have achieved six consecutive months of growth this year, and the growth rate has accelerated month by month, and medium and large excavator products have also stabilized and rebounded.

second, the overseas market is recovering rapidly. in august 2024, the sales volume of small excavators overseas increased by 16% year-on-year, medium excavators increased by 32%, and large excavators increased by 63%. non-excavation products such as concrete machinery and lifting machinery continued the high growth rate in the first half of the year.

especially in the african market, the company has provided sales services in 52 countries and regions in africa (61 countries and regions in total), and has established 4 regions, 14 subsidiaries, 8 agents, and 50 service outlets in africa, with a localization rate of over 60%. from january to august this year, the company's sales in africa reached 3.5 billion yuan, an increase of more than 60% year-on-year. since entering africa in 2002, the company has sold more than 20 billion yuan of equipment, with more than 23,000 equipment units, ranking first among chinese engineering machinery companies in exporting products to africa.

sany heavy industry said it will further increase its efforts to explore the african market and continuously deepen its all-round cooperation with african partners in the fields of smart manufacturing, infrastructure construction, new energy, etc., to create greater value for customers and make greater contributions to promoting africa's industrialization and modernization process.

overall, in the first half of 2024, sany heavy industry achieved overseas sales revenue of 23.542 billion yuan, a year-on-year increase of 4.79%, and overseas revenue accounted for 62.23% of its main business revenue.

the sharp drop was caused by the reduction of holdings by directors, supervisors and senior executives

it is worth mentioning that sany heavy industry rarely made separate announcements on its sales situation before. some market insiders speculated that this might be a "remedy" for the stock price plunge caused by the news of share reduction on september 9.

on the evening of september 6, sany heavy industry issued an announcement on the share reduction plan of shareholders and directors, supervisors and senior managers. shareholders xiang wenbo, zhou fugui, yu hongfu, liu hua, liu daojun, sun xinliang and xi qing plan to reduce their holdings by no more than 5 million shares, 755,000 shares, 908,000 shares, 421,600 shares, 198,600 shares, 165,900 shares and 100,000 shares respectively through centralized bidding or block trading from october 9, 2024 to january 8, 2025. the reduction price will be determined according to the market price.

the entities involved in the reduction of holdings this time include the chairman, vice chairman and other senior executives of sany heavy industry and the company's major shareholders acting in concert. xiang wenbo, yu hongfu, liu hua, liu daojun, sun xinliang and xi qing are all directors, supervisors and senior executives of sany heavy industry. among them, xiang wenbo and zhou fugui are both major shareholders of sany group co., ltd., the major shareholder of sany heavy industry. according to public information, xiang wenbo is the chairman of sany heavy industry, and yu hongfu is the vice chairman and president of the company.

as for the reason for the reduction, sany heavy industry’s announcement stated that it was “due to personal financial needs.” in addition, the company’s investor relations department responded to the media, “first, the company’s current production and operations are normal, and there is no undisclosed material information. second, the leaders can only reduce their holdings by 25% each year. when the leaders had the idea of ​​reducing their holdings in the early stage, we have already delayed some of it as much as possible. now the reduction has been put off to the last three months because the leaders have personal financial needs. if they don’t disclose it, there will be no chance this year. from the perspective of the leaders, the reduction has little to do with the company’s operations, it is just because of their personal financial needs.”

however, the above reasons did not save the stock price from falling. on september 9, sany heavy industry opened low and continued to fall, falling 5.52% by the close of the market, with the trading volume increasing to 1.366 billion yuan.

domestic demand for construction machinery industry bottoms out, while overseas demand stabilizes

in the long run, in recent years, affected by factors such as the continuous adjustment of the real estate market, the performance of the domestic construction machinery industry has been under pressure, and sany heavy industry's stock price has been in a bottom-swinging trend since 2022.

in terms of performance, sany heavy industry's total operating revenue declined in 2022 and 2023, and its net profit fell sharply in 2021 and 2022, and only achieved a slight increase in 2023. the latest semi-annual report shows that in the first half of 2024, the company achieved operating income of 38.738 billion yuan, a year-on-year decrease of 1.95%; the net profit attributable to shareholders of listed companies was 3.573 billion yuan, a year-on-year increase of 4.80%.

in terms of stock price, sany heavy industry's stock price fell for three consecutive years in 2021, 2022 and 2023, falling by 33.4%, 28.86% and 11.91% respectively. in the first half of 2024, sany heavy industry's stock price rebounded, but it has been volatile again since may, and its year-to-date increase as of september 9 has fallen back to 12.25%.

judging from the announcement, the above performance and stock price stabilization are all due to the growth of overseas sales. sany heavy industry disclosed that in the first half of 2024, the company's domestic and overseas revenues were 15 billion yuan and 23.7 billion yuan respectively, down 7.2% and up 5.7% year-on-year respectively, and domestic revenue is still in a downward trend.

among them, the company's main business achieved overseas sales revenue of 23.542 billion yuan, a year-on-year increase of 4.79%, and overseas revenue accounted for 62.23% of the main business revenue. benefiting from the rapid growth of overseas sales, price increases of some products, improved product structure, and the promotion of cost reduction and efficiency improvement measures, the company's overseas main business gross profit margin continued to increase to 31.57%, up 0.56 percentage points from 31.01% in the same period last year.

guosheng securities pointed out in a research report that in the context of domestic pressure in recent years, the importance of overseas markets has increased, and major oems have focused on overseas markets to combat domestic cyclical disturbances. from the monthly data, the growth rate of the overseas excavator market from march to july this year showed a trend of narrowing from decline to increase, which was -16%, -13%-9%, -7.5%, and -0.5% respectively. looking forward to the second half of this year, because the base in the second half of last year was not high, the decline in the second half of this year is expected to narrow or even turn positive against the background of the end of overseas elections, the gradual clarification of local policies, and the gradual digestion of inventory.

the domestic market also successfully bottomed out in the first half of this year, and is expected to form an upward trend in the second half of the year. guosheng securities pointed out in a research report that judging from domestic monthly data, excavator sales have turned positive for the first time in the downward cycle that began in 2021. the growth rates from march to july this year were 9%, 13%, 29%, 26%, and 22%. therefore, at least from the data, the domestic market has successfully bottomed out, and in the future, it may usher in an upward turning point against the backdrop of policy-driven domestic demand recovery and the arrival of replacement demand.