Guotai Junan: Maintain a "buy" rating on Sinotruk Jinan Truck (03808) with a target price raised to 25 Hong Kong dollars.

Guotai Junan released a research report stating that it maintains a "buy" rating for Sinotruk Jinan Truck (03808), considering its smooth progress in overseas business and further increase in market share; the domestic sales of natural gas heavy trucks are booming; the new policy of the central government to replace old vehicles with new ones is being gradually implemented, with estimated earnings per share of 2.629 yuan, 3.251 yuan, and 3.876 yuan respectively for 2024 to 2026, and the target price has been raised from 21.5 Hong Kong dollars to 25 Hong Kong dollars. The bank points out that Sinotruk Jinan Truck saw both volume and price rise in the first half of the year, with strong export sales. With branding advantages and mature operating channels, it further expands market share in overseas markets, mainly in Southeast Asia and Africa, with a continuous increase in market share. In the first half of the year, the total sales of heavy and light trucks in China reached about 351,000 units, hitting a record high, with a 6% year-on-year increase. Sinotruk Jinan Truck exported 68,400 heavy trucks, a 4.9% increase year-on-year. The bank expects the company's heavy truck sales to remain around 240,000 units in 2024.