HK Stock Market Move | Heavy truck concept stocks continue to fall, with soaring oil prices having a significant impact on the heavy truck industry. The demand for diesel heavy trucks is being squeezed.

Concept stocks of heavy trucks continue to decline, as of press time, Sinotruk Jinan Truck (03808) fell by 5.23% to 40.62 Hong Kong dollars; Weichai Power (02338) fell by 4.34% to 31.32 Hong Kong dollars. On the news front, recently, the international oil price has remained high due to the impact of the geopolitical situation in the Middle East. Data shows that for the express delivery industry, which relies heavily on road transport, fuel costs account for 30%-40% of the transportation costs. For a heavy truck that travels 70,000 kilometers per year, the increase in fuel prices in the first quarter alone has increased its fuel costs by tens of thousands of yuan. CMSC pointed out that the skyrocketing oil prices have a significant qualitative and quantitative impact on the heavy truck industry. In a macro environment of inflation and high oil prices, the overall demand for heavy truck purchases faces significant downward pressure. In terms of energy structure, high oil prices accelerate the industry's transition to new energy and natural gas heavy trucks. Demand for diesel-powered heavy trucks is being squeezed, while natural gas heavy trucks are quickly rebounding sales due to the advantage of oil and gas price differentials; the advantages of pure electric heavy trucks in terms of total cost of ownership (TCO) are becoming more prominent, which will drive the industry chain to accelerate electrification.