Sany Heavy Industry reports better performance in Q1

Sany Heavy Industry reported a 338.51-percent year-on-year increase in net profit in the first quarter (Q1), thanks to the company's business transformation last year.

In the first three month of 2016, the company's net profit reached 90.16 million yuan ($13.83 million), 65% of the total in 2015. The company's revenue last year is 23.367 billion yuan ($3.587 billion), according to the 2015 annual report released meanwhile.

The international business of Sany Heavy Industry grew steadily in 2015 with sales revenue reaching 10 billion yuan ($1.535 billion), a year-on-year increase of 11.9%, and accounting for 44.2% of the total revenue. The Asia-Pacific, India and Latin America regions, especially, shows rapid surge.

As per the WIND statistics, 592 units of Sany's excavators were sold in Jan, 2016 with 4.96% year-on-year growth, 770 in Feb, and 2483 in March, showcasing an excellent performance in the excavators market.

In spite of the overall decline in construction machinery industry worldwide, the market share of Sany's leading products continues to be accelerated. The concrete machinery remained the first place globally, the excavators retained as top-seller for five consecutive years in China with its market share exceeding 17%, the market share of the crawler cranes in 250-tonnage and above maintained a leading position and the truck cranes ranked among Top 3 in 50-tonnage and above products market of the industry.

Sany global layout highly coincides with the regional planning in One Belt and One Road initiative. The company is now pushing forward the upgrade of its international operation mode through promoting the upstream and downstream enterprises going out together, international capacity cooperation, and major project output.

In addition, the company has also seen effects in de-capacity and R&D innovations, and fulfilled the initial goal of industrial Internet reform, and made progress in cost control policy.

Sinolink Securities analysis indicates that the unexpected Q1 data is attributed to the increased demands in property and infrastructure investment, which is a clear signal of industrial recovery. The signs of recovery also show in the growth of excavator sales data in Q1.