CROSBY Research – Sany Heavy Equipment (631 HK/NR): Margin pressure dented 1Q26 bottom line growth

21 May 2026

Sany Heavy announced its 1Q26 business update with revenue increased 13.2% YoY to Rmb6.7bn in 1Q26. Net profit, however, declined by 19.8% YoY to Rmb509.4m in 1Q26. Its GPM declined by 3.6ppt to 20.7% in 1Q26. Sany Heavy’s GPM came under pressure primarily due to change in the product mix and higher material costs.