SANY INT'L (00631) shares fell more than 6%, hitting a new low for the year at HK$8.49. As of the latest update, the stock was down 6.29% at HK$8.49, with a turnover of HK$56.59 million. The decline follows the company's recent release of its first-quarter results. The group reported revenue of RMB 6.651 billion, a year-on-year increase of 13.2%. However, profit attributable to owners of the parent was RMB 509 million, a decrease of 19.8% compared to the same period last year. The decrease in net profit was primarily attributed to a higher proportion of revenue from products with slightly lower gross margins in the logistics equipment business, leading to a decline in the overall product gross margin. Additionally, during the period, the new energy business was impacted by rising prices of raw materials such as silicon wafers, silicon materials, and battery cells, which reduced the overall product gross margin for that segment. A CLSA research report noted that SANY INT'L's first-quarter performance has raised market concerns. While overseas revenue doubled year-on-year, profitability and cost control fell short of expectations. The firm cut its net profit forecasts for SANY INT'L for 2026 and 2027 by 28% and 19%, respectively, to reflect margin pressure. It also lowered its target price for the stock from HK$16 to HK$12, while maintaining an "Outperform" rating. The report highlighted that SANY INT'L's solar sales plummeted 74% year-on-year in the first quarter, resulting in a loss of RMB 120 million. Management expects the full-year loss for this segment to exceed RMB 400 million, mainly due to initial investments in personnel for microgrids and overseas project expansion, which exceeded market expectations.