BOC International believes that as Sinotruk (03808) continues to boost sales of heavy natural gas trucks, there is room for further increase in market share.
The Zhitong Finance App learned that BOC International released a research report stating that it maintained the “buy” rating of Sinotruk (03808), attracted valuations, and slightly raised the 2024/2025 profit forecast. As an industry leader, the company will benefit from the recovery in heavy truck sales, and its market share is expected to increase further. The target price was raised from HK$25.06 to HK$26.49, making the valuation attractive. The company's heavy truck recovery in 2023 was strong, and net profit to mother increased sharply year over year.
According to the report, in terms of sales volume, from January to February 2024, the mainland heavy truck market sold a total of 157,000 vehicles, a cumulative increase of 25% over the previous year. Among them, Sinotruk's sales increased 31% year on year, and its market share further increased to about 30%. In terms of heavy natural gas trucks, compared with the same period in 2023, 4 of the top 10 sales companies achieved an increase in market share in January-February this year. The most obvious increase in share was Sinotruk. The market share in January-February this year increased sharply by 13.05 percentage points to 24.1% compared to the same period in 2023. In January-February of this year, the company's heavy natural gas truck sales increased 259% year on year, in line with the bank's previous report predicting that Sinotruk will develop heavy natural gas trucks. The bank believes that as the company continues to increase its sales of heavy natural gas trucks, there is room for further increase in market share. In terms of overseas markets, the company's heavy truck export sales accounted for 57% of its heavy truck sales in 2023, while accounting for about 50% of China's heavy truck export sales. The bank believes that its first-mover advantage is obvious, and its share is expected to remain above 50% in 2024.