Sany Heavy Industry's revenue in the first half of the year was 44.53 billion, a year-on-year increase of 15%, and net profit was 5.22 billion, a year-on-year increase of 46%. The performance is remarkable.
Looking solely at the second quarter, revenue increased by 11.4% year-on-year, net profit was 2.7 billion, a year-on-year increase of 38%, and cash flow for the first half was 10.1 billion, a year-on-year increase of 20%.
I have holdings in Sany; let me elaborate a few points.
In the first half of the year, Sany's excavators still held the top position in the domestic market, with sales revenue of 17.5 billion, a year-on-year increase of 15%. The top positions also include crawler cranes, and the fastest growth was in road machinery, with an increase of 36.8%.
Although Sany has some cyclicality, it is generally well-regarded and has a blue-chip + white horse character. I have held it for a long time, and I exited after the last peak.
This cycle has a significant change compared to the last one. The last cycle was focused on large-scale domestic infrastructure and robust domestic sales, while this cycle is driven by both domestic demand and exports. Sany's export ratio has far exceeded domestic sales, reaching 59% by the end of the first half of the year. Going abroad is the second expectation for Sany to expand its horizons.
After the bottom adjustment, Sany's position is not high, and the momentum has completely reversed. I may adjust my holdings and add positions later, with two main logical points.
One is that many large infrastructure projects have started domestically, such as the 1.2 trillion Yaxia Hydropower Station and the construction in Xinjiang. There is a high probability that other projects will be launched in the future. Coupled with the stabilization and recovery of the real estate market over the next 3-5 years, this represents another strengthening cycle for the entire infrastructure sector.
Another factor is the strengthening expectations of overseas demand. Whether it's the infrastructure boom in Belt and Road countries, following the path we've walked, or the reconstruction after geopolitical conflicts (like in Ukraine and the Middle East), as well as the renovation and expansion in developed countries such as Europe and the United States, all these create a large number of opportunities for the export of construction machinery.
As the leading domestic construction machinery company, Sany's technology is already close to global leaders like Caterpillar and Komatsu, but it has a clear price advantage and strong cost-performance ratio. Looking long-term, every breakthrough in global market share strengthens the underlying logic.
In fact, the logic of manufacturing and chips is not much different; it's all about the engineer dividend, including pharmaceuticals, which follows the same logic.