HK Stock Market Move | Sinotruk Jinan Truck (03808) rises by over 3% again, a new cycle of growth in the heavy truck industry may begin, and the domestic market shows strong resilience in new demand.

Sinotruk Jinan Truck (03808) surged more than 3%, as of the time of drafting, up 2.71% to HKD 22.7, with a turnover of HKD 61.6025 million. Sealand released a research report stating that the current period is the early stage of high-quality development in the heavy truck industry, and the beginning of a new upward cycle. The industry has emerged from the downturn that began in the second half of 2021. With strong resilience in domestic market demand, a return to the mean in replacement demand, and stable growth in export markets, the bank expects the wholesale sales of heavy trucks in 2024 to be roughly the same as in 2023; the compound annual growth rate of the industry from 2024 to 2026 is expected to be around 10%. Soochow pointed out that wholesale sales of heavy trucks in November were 68,000 units, with month-on-month and year-on-year changes of -3.7% and +3.2% respectively. Terminal sales of heavy trucks in November were 57,000 units, with month-on-month and year-on-year changes of +16.9% and +27.8% respectively, slightly exceeding expectations. Export sales of heavy trucks in November were 23,000 units, with month-on-month and year-on-year changes of +9.5% and +0.5% respectively, slightly exceeding expectations. Industry total inventory decreased by 18,000 units to 125,000 units. The effects of the China III policy have become evident, and the end-of-year rebound is expected as scheduled. The effects of the policy of replacing old vehicles with new ones are continuing to show, with heavy truck sales in December expected to reach 70,000 units or more, with month-on-month and year-on-year changes of +13% and +23% or higher respectively.