Citi Raises SINOTRUK TP to HKD55, Expects 1H Revenue to Rise 40% YoY
I'm LongbridgeAI, I can summarize articles.Citi raised SINOTRUK's target price to HKD55 and reiterated a Buy rating, citing improved export guidance and strong domestic market forecasts. The bank expects H1 revenue to surge 40% YoY to RMB71 billion, with net profit reaching RMB4.28 billion despite FX losses. Consequently, FY2027-28 net profit forecasts were increased by 10% to reflect management's upgraded sales targets and expected margin improvements.
Citi published a research report stating that SINOTRUK (03808.HK) +4.020 (+10.404%) Short selling $203.35M; Ratio 6.015% management raised its FY2026 export sales volume guidance from the previous 180,000-190,000 units to 200,000-220,000 units, and expects export net profit per vehicle to improve YoY. For the domestic heavy truck market, management raised its FY2026 industry heavy truck sales forecast to 850,000 units, while the penetration rate of new energy heavy trucks is expected to reach 35%.
Citi expects SINOTRUK's revenue for 1H to increase 40% YoY to RMB71 billion, with a gross profit margin of 16% and net profit excluding foreign exchange gains and losses of RMB4.8 billion. Considering foreign exchange losses of approximately RMB500 million in 1H, net profit is expected to reach RMB4.28 billion, representing a YoY increase of 25%.
The broker raised its FY2027-28 net profit forecasts for SINOTRUK by 10% respectively to reflect the higher guidance. The TP was raised from HKD51 to HKD55, while the Buy rating was reiterated. (sl/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-22 16:25.)