UBS has issued a research report raising its earnings per share forecasts for SANY INT'L (00631) by 3% to 16% for the 2026 to 2028 period, based on the company's first-half performance and order book. The upward revision reflects stronger-than-expected profitability in mining trucks and port machinery, partially offset by lowered assumptions for coal and emerging business segments. The bank maintains its target price-to-earnings multiple of 12 times for next year, lifting the target price from HK$9.45 to HK$10.8, while reiterating a "Buy" rating.

Key takeaways from the investor meeting held after SANY INT'L's first-half results indicate robust overseas growth momentum in the mining equipment division. Management has reaffirmed its target of reaching 8 billion yuan in overseas revenue for the mining equipment business, with current orders on hand totaling 3.4 billion yuan. Port machinery orders stand at 7.9 billion yuan, exceeding levels seen at the start of the year, with approximately 80% of capacity for 2027 already reserved.

In the photovoltaic segment, the company recorded a loss of around 400 million yuan in the first half, with third-quarter losses showing a modest quarter-on-quarter narrowing. Management confirmed plans for an orderly exit from the photovoltaic business, currently assessing impairment risks, with the final outcome to be reflected in the full-year 2026 results.