Zhongjin: The strong momentum of heavy truck exports in 2026 is expected to continue. We are optimistic about the long-term opportunities for Chinese heavy trucks to go abroad.

The China International Capital Corporation (CICC) released a research report stating that since the 25th H2, the monthly export volume of heavy trucks in China has reached a new level. According to the General Administration of Customs, the export volume of heavy trucks in China is expected to increase by 12.5% to 371,000 units in 2025. The demand for real estate and highways in regions such as Vietnam is strong, while investment demand in mining in regions such as Indonesia, Congo, and Tanzania is robust. The growth space for heavy truck demand in Asia, Africa, and Latin America is sustainable. Optimistic about the long-term opportunities for Chinese heavy trucks to go global, it is estimated that the export volume will increase by 5-20% to 350,000-400,000 units in 2026. Leading companies in the overseas market will continue to strengthen their position, and it is recommended to invest in Sinotruk Jinan Truck (000951.SZ, 03808). Some of the main points of the CICC report are as follows: - The export of heavy trucks is expected to increase significantly in 2025, and the momentum is expected to continue in 2026. - Sinotruk Jinan Truck is consolidating its base in Asia and Africa and expanding into the European market. - With the strong growth in exports, profit forecasts for Sinotruk Truck A and H have been raised for 2025 and 2026. - The target prices for Sinotruk A and H have been raised due to the expected increase in valuation. Risks include geopolitical conflicts affecting external demand and policy changes affecting domestic demand.