Citigroup: Raised target price for Sinotruk Jinan Truck (03808) to HK$55, expecting a 40% year-on-year increase in revenue for the first half of the year.

Citigroup released a research report stating that the management of Sinotruk Jinan Truck (03808) has revised its export sales guidance for the fiscal year 2026 from the original 180,000 to 190,000 vehicles to 200,000 to 220,000 vehicles, and is expecting an improvement in net profit per exported vehicle year-on-year. In terms of the domestic heavy truck market, the management has raised its industry forecast for heavy truck sales in the fiscal year 2026 to 850,000 vehicles, with the penetration rate of new energy heavy trucks expected to reach 35%. The bank has raised its net profit forecast for Sinotruk Jinan Truck for the fiscal years 2027 to 2028 by 10% each, reflecting the increase in guidance, and has raised the target price from 51 Hong Kong dollars to 55 Hong Kong dollars, reiterating a "buy" rating. Citigroup forecasts that Sinotruk Jinan Truck's revenue in the first half of the year will increase by 40% year-on-year to 71 billion yuan, with a gross profit margin of 16%. After deducting foreign exchange gains and losses, the net profit is expected to be 4.8 billion yuan. Taking into account foreign exchange losses of approximately 500 million yuan in the first half of the year, the expected net profit is 42.8 billion yuan, an increase of 25% year-on-year.