Strong growth! Sany Heavy Industry's overseas gross profit margin exceeded that of its domestic counterparts for the first time

In 2022, Sany Heavy Industry's internationalization accelerated, with strong growth in overseas market revenue, rapid expansion in the high-end market, a significant increase in the share of core products, and continuous improvement in international competitiveness and brand awareness.

The annual report shows that in 2022, Sany Heavy Industry's overseas market revenue was 36.57 billion yuan, an increase of 47.2% year-on-year, accounting for 45.7% of the total revenue, up 22.3 percentage points year-on-year. Among them, the international sales revenue excluding Putzmeister was 30.14 billion yuan, increasing by 58.5% year-on-year.

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

The high-end market has made rapid breakthroughs

After years of strategic planning, the company's overseas sales have seen remarkable growth year after year, achieving a significant transformation in its sales structure. The annual report shows that in 2022, Europe and the United States have become the regions with the fastest growth for Sany overseas.

By region, North America had the largest revenue growth, with a revenue of 4.03 billion yuan in 2022, representing a year-on-year increase of 85.8%. Secondly, in South America, the revenue in 2022 was 3.07 billion yuan, representing a year-on-year growth of 63.8%.

In terms of scale, the Asia-Australia region has the largest revenue, with a revenue of 14.85 billion yuan in 2022, representing a year-on-year growth of 41.1%. Secondly, in the European region, the revenue in 2022 was 11.78 billion yuan, increasing by approximately 44% year-on-year.

The share of core products has increased significantly

In 2022, Sany launched a total of 79 products that met international standards, with a product coverage rate in Europe and America exceeding 70%, which boosted the rapid growth of overseas sales. The sales of excavating machinery, concrete machinery and lifting machinery in overseas markets were 18.08 billion yuan, 7.54 billion yuan and 5.1 billion yuan respectively, increasing by 69%, 6.1% and 24.6% year-on-year.

According to the statistics of AEM, the overseas market share of Sany excavators exceeds 8%, and the market share and sales volume of excavators in each region have been increasing rapidly. In addition, the joint market share of the dual brands of concrete pump trucks has reached 40%.

According to customs statistics, the company's overseas exports of excavating machinery, lifting machinery and concrete machinery all rank first.

Sany Heavy Industry's outstanding performance in internationalization and its long-term growth potential in overseas market expansion have also been favored by the market.

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