In 2022, Sany Heavy Industry will accelerate its internationalization, with strong growth in revenue in overseas markets, rapid growth in the high-end market, a substantial increase in the share of core products, and continuous improvement in international competitiveness and brand awareness.

Overseas gross profit margin surpassed that of domestic for the first time

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

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

Rapid breakthrough in the high-end market

In terms of regions, North America has the largest revenue growth, and its revenue in 2022 will be 4.03 billion yuan, a year-on-year increase of 85.8%. Followed by South America, the revenue in 2022 will be 3.07 billion yuan, a year-on-year increase of 63.8%.

In terms of scale, the Asia-Australia region has the largest revenue, with revenue of 14.85 billion yuan in 2022, a year-on-year increase of 41.1%. Followed by the European region, the revenue in 2022 will be 11.78 billion yuan, a year-on-year increase of about 44%.

The share of core products has increased significantly

In 2022, Sany will launch a total of 79 products that meet international standards, covering more than 70% of European and American products, boosting the rapid growth of overseas sales. Sales of excavating machinery, concrete machinery, and hoisting machinery in overseas markets were 18.08 billion, 7.54 billion, and 5.1 billion yuan, up 69%, 6.1%, and 24.6% year-on-year.

According to AEM statistics, the overseas market share of Sany excavators exceeds 8%, and the market share and sales volume of excavators in all regions have increased rapidly. In addition, the joint market share of dual brands of concrete pump trucks reached 40%. According to customs statistics, the company's overseas exports of excavating machinery, hoisting machinery, and concrete machinery products all rank first.

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. Essence Securities released a research report that Sany Heavy Industry will further deepen its internationalization strategy in 2023, and exports are expected to continue to grow to support its positive year-on-year revenue growth in 2023. Soochow Securities believes that Sany Heavy Industry's globalization strategy has entered the cashing period, and is optimistic about the company's profit and valuation in 2023.Editor/XingWentao