Sinotruk: Strong Export Momentum, Earnings Upgrades and Dividend Support Underscore Buy Rating

In a report released yesterday, Wayne Fung from CMB International Securities upgraded Sinotruk Hong Kong to a Buy, with a price target of HK$46.00.

Wayne Fung has given his Buy rating due to a combination of factors, notably a much stronger and longer‑lasting outlook for heavy‑duty truck exports than previously assumed, especially with deeper access to Europe via the Steyr Automotive partnership. He has raised his 2026–2027 earnings forecasts substantially on the back of higher projected export volumes and argues that, even after a sharp year‑to‑date share price gain and a valuation above the historical average, there is still meaningful upside as the market continues to price in the company’s overseas growth potential.

In addition, Sinotruk’s 2025 net profit exceeded market expectations, supported by robust second‑half earnings and an attractive dividend payout ratio, while management continues to hit performance targets under its share award scheme, aligning incentives with shareholders. The company also benefits from strong overseas orders into 2026 and a supportive domestic backdrop, with a clear replacement cycle emerging in China’s heavy‑duty truck fleet, all of which underpin Fung’s higher target price and reinforce his conviction in the Buy recommendation.