CICC hiked Sinotruk’s target price by 39.1% to HK$22.26, kept Outperform rating
STOCKS VIEWS & ANALYSIS
CICC hiked Sinotruk’s target price by 39.1% to HK$22.26, kept Outperform rating
STOCKS VIEWS & ANALYSIS

CICC hiked Sinotruk’s target price by 39.1% to HK$22.26, kept Outperform rating

 

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Chinese cargo truck manufacturer Sinotruk is expected to report an 80% – 100% year-on-year spike in net profit for the first half of the year, reaching 2.309 billion yuan – 2.565 billion yuan.

The broker believed that the Chinese heavy truck industry is expected to enter a new growth cycle from 2023 to 2025, which will drive Sinotruk’s market share to increase.

The broker raised the forecast of the company’s profit in 2023/24 by 35.2% and 14.3% respectively, taking into account the release of economies of scale and strong export business, which will lead to higher profitability.

CICC hiked Sinotruk’s target price by 39.1% to HK$22.26 and maintained its Outperform rating.