Citigroup: Raising the target price of Sinotruk (03808) to HK$55, revenue for the first half of the year is expected to increase 40% year-on-year

The Zhitong Finance App learned that Citi released a research report saying that Sinotruk (03808) management raised the export sales guide for the 2026 fiscal year from 180,000 to 190,000 units to 200,000 to 220,000 units, and expects the net export profit of each vehicle to improve year over year. In the domestic heavy truck market, management raised the industry's heavy truck sales forecast for FY2026 to 850,000 units, and the penetration rate of new energy heavy trucks is expected to reach 35%. The bank raised Sinotruk's net profit forecast for the 2027-28 fiscal year by 10% respectively to reflect the increase in guidance. The target price was raised from HK$51 to HK$55, reaffirming the “buy” rating.

Citigroup expects Sinotruk's revenue to increase 40% year-on-year to 71 billion yuan in the first half of the year, gross margin of 16%, and net profit of 4.8 billion yuan after deducting foreign exchange gains and losses. Considering that foreign exchange losses in the first half of the year involved about 500 million yuan, net profit is expected to be 4.28 billion yuan, an increase of 25% over the previous year.