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) sales experienced a 12% year-on-year decline, reaching approximately 62,000 units. Sinotruk (3808 HK) is among the top four players dominating this market, along with FAW, Weichai (2338 HK), and Dongfeng. Together, these companies accounted for roughly 81% of the market share.

Sinotruk’s Market Share and Sales Figures

Sinotruk sold around 17,000 units of heavy-duty trucks in August 2024, which marks a 15% year-on-year decrease. Despite the drop in sales, Sinotruk’s market share improved, reaching 27.6% in August 2024, a rise of 1.9 percentage points year-on-year.

Outlook on Sales Volume

The company, along with other top players in the HDT market, is keeping an eye on potential trade-in execution guidelines that may be issued by local governments in the future. Such guidelines are expected to help boost sales volumes moving forward.

Broker’s Recommendation

As of 23 September 2024, MIB Securities notes Sinotruk (3808 HK) with a target price (TP) of HKD 24.64. The stock has a “Buy” recommendation from 82.4% of analysts, though the company is currently not rated by the broker itself.