CROSBY Research – Sany Heavy Equipment (631 HK/ NR): Impairment losses dented FY24 bottom line growth

10 January 2025

Sany Heavy issued a profit warning citing that the company will record an impairment loss on goodwill for the oil and gas equipment business cash generating unit of Rmb470.0m and impairment loss on properties for sales of Rmb280.0m in FY24. As a result, its FY24 NP is expected to decrease by 25%- 45% to Rmb1.0bn to Rmb1.4bn.