Machinery / Industrial Parts & Tools

According to customs data, in 2022, Sany Heavy Industry's internationalization has accelerated, with strong revenue growth in overseas markets, rapid improvement in high-end markets, significant increase in core product share, and continuous improvement in international competitiveness and brand awareness.

Overseas gross profit margin surpasses domestic for the first time

According to the annual report, in 2022, Sany Heavy Industry's overseas market revenue was 36.57 billion yuan, a year-on-year increase of 47.2%, accounting for 45.7% of the total revenue, a year-on-year increase of 22.3 percentage points. Among them, the international sales revenue excluding Putzmeister reached 30.14 billion yuan, a significant increase of 58.5% year-on-year.

Benefiting from the increase in overseas sales scale and improvement in product structure, the company's overseas main business interest rate has steadily increased. In 2022, Sany Heavy Industry's overseas market gross profit margin reached 26.4%, surpassing the domestic market's 24% for the first time. Among them, the gross profit margin in the second half of the year reached 27.97%.

Rapid breakthrough in the high-end market

After years of layout, the company's overseas sales have shown remarkable growth and achieved a significant transformation in its sales structure. According to customs data, in 2022, Europe and America have become the fastest growing regions for Sany overseas.

Customs data shows that by region, North America has the largest revenue growth, with a revenue of 4.03 billion yuan in 2022, a year-on-year increase of 85.8%. Next is the South American region, with a revenue of 3.07 billion yuan in 2022, a year-on-year increase of 63.8%.

According to customs data, in terms of scale, the Asia Australia region has the largest revenue, with a revenue of 14.85 billion yuan in 2022, a year-on-year increase of 41.1%. Next is the European region, with a revenue of 11.78 billion yuan in 2022, an increase of approximately 44% year-on-year.

Significant increase in core product share

According to customs data, in 2022, San launched a total of 79 products that meet international standards, with European and American product coverage exceeding 70%, promoting rapid growth in overseas sales. The sales revenue of mining machinery, concrete machinery, and lifting machinery in the overseas market were 18.08 billion, 7.54 billion, and 5.1 billion yuan, respectively, with year-on-year growth of 69%, 6.1%, and 24.6%.

According to AEM statistics, the overseas market share of Sany excavator exceeds 8%, and the excavator market share and sales in various regions have rapidly increased. In addition, the joint market share of concrete pump trucks with two brands reached 40%.

According to customs data, the company's overseas exports of mining machinery, lifting machinery, and concrete machinery products all remain the top.

The outstanding performance of internationalization and the long-term growth ability of Sany Heavy Industry's overseas market expansion are also favored by the market.

According to a research report released by Anxin Securities, Sany Heavy Industry's internationalization strategy in 2023 will be further deepened, and exports are expected to continue to grow to support its positive year-on-year revenue growth in 2023. Dongwu Securities believes that Sany Heavy Industry's globalization strategy has entered a period of realization, and it is optimistic that the company's profits and valuation will double increase in 2023.