SANY INTERNATIONAL(631.HK)：ROBOTIC BUSINESS A SURPRISE; MORE GROWTH DRIVERS AHEAD-格隆汇

机构：招银国际
研究员：Wayne Fung

With the strong support of SANY Group （parent company）， SANYI is rapidlygrowing its robot business and we see high visibility in 2021E. Besides, crusherproducts will be launched in 2H21E which will become another driver. All these,together with fast growing wide-body trucks, will help SANYI achievediversification and enhance growth quality. We slightly revise up our earningsforecast in 2021E-22E by 4-5% and lift our TP to HK$11.9 （24x 2021E P/E, onthe back of 24% earnings CAGR in 2021E-22E）。 We believe further support fromSANY Group and potential M&A will offer additional upside. Reiterate BUY.
Robot business supported by group company’s orders. At present,there are three major products, namely robotic integrated system,automated guided vehicle （AGV） and electric forklift. Revenue from robotreached RMB400mn in 2020, accounting for ~5% of total revenue. The saleswere driven mainly by SANY Group’s lighthouse factories upgrade andconstruction. The upcoming upgrade of dozens of lighthouse factories willoffer high visibility to SANYI’s robot business. At present, backlog reachesRMB530mn. This, together with RMB140mn orders for electric forklift,accounts for 14% of total backlog of the Company. SANYI plans to achieveexternal sales next year after establishing solid track record.
High growth of wide-body truck to continue. Sales volume of wide-bodytruck reached ~1.2k units in 2020E. SANYI targets to deliver 2k units thisyear. SANYI expects gross margin for wide-body truck will continue toexpand （currently 14%） with the launch of 80t/100t models and rising salesin overseas.
Crusher machinery to be launched in 2H21E. SANYI believes the lowindustry concentration in crusher industry （several thousand players） willoffer room for penetration. SANYI plans to launch crusher machinery in2H21E with a focus on the high end in order to achieve import substitution.
SANYI will leverage on SANY Group’s distribution network to speed up thesales. Going forward, SANYI will not only offer equipment sales but also EPCand services for customers.
Major risk factors: （1） weakness in mining activities; （2） higher-thanexpectedexpense to drive the introduction of new products.