Bank of America Securities: Raising the target price of Sinotruk (03808) to HK$29, reaffirming the “neutral” rating

The Zhitong Finance App learned that Bank of America Securities released a research report stating that it raised the target price of Sinotruk (03808) from HK$24.3 to HK$29, reaffirming the neutral rating and believing that the current stock price reasonably reflects its growth prospects. However, the bank is still optimistic about the company's long-term export expansion business story and stable position in the local market.

The bank held a conference call with Sinotruk. Management said that Sinotruk's annual sales target of 300,000 vehicles is progressing smoothly. The company is steadily advancing its 2025 sales and profit margin targets, and stated that it will maintain a prudent capital expenditure plan for 2025-2027, with no more than 2 billion yuan per year, focusing on overseas production base construction (such as Kazakhstan, Brazil, Indonesia). At the same time, it is expected that the 2025-2027 dividend ratio will not be less than 55%.

Based on updated sales and gross margin assumptions, Bank of America Securities raised Sinotruk's 2025-27 revenue forecasts by 5%, 4%, and 4%, respectively, and raised the gross margin forecast for 2026 and 27 by 0.5 percentage points each in response to the increase in overseas sales share. The earnings forecast per share for 2025 to 27 was also raised by 4%, 10%, and 10%.