Date: 23 September 2024
Broker: MIB Securities (Hong Kong) Ltd
August 2024 Heavy-Duty Truck Sales Performance
In August 2024, China’s heavy-duty truck (HDT) market experienced a year-on-year sales decline of 12%, with approximately 62,000 units sold. Weichai (2338 HK) is one of the top four players in this market, along with Sinotruk (3808 HK), FAW, and Dongfeng. Collectively, these four companies account for roughly 81% of the market share.
Weichai’s Market Share and Sales Figures
Weichai sold around 10,800 units of heavy-duty trucks in August 2024, reflecting a 5% year-on-year decline. Despite the drop in sales volume, Weichai maintained a strong market presence with a 16.4% market share, representing a slight increase of 0.2 percentage points year-on-year.
Potential for Growth through Trade-in Guidelines
Similar to other market players, Weichai is monitoring potential local government trade-in execution guidelines, which could play a pivotal role in stimulating sales volumes in the future.
Broker’s Recommendation
As of 23 September 2024, Weichai (2338 HK) is observed with a target price (TP) of HKD 18.57. The stock has a “Buy” recommendation from 88.9% of analysts, though MIB Securities (Hong Kong) Ltd does not currently rate the company.
