Sinotruk Hong Kong (3808) AI Stock Analysis

• Market Cap: HK$81.89B
• Dividend Yield: 4.77%
• Average Volume (3M): 4.45M
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.47
• Revenue Growth: 4.23%
• EPS Growth: -3.54%
• Country: HK
• Employees: 28,560
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 1.40
• Shares Outstanding: 2,760,993,400
• 10 Day Avg. Volume: 2,795,787
• 30 Day Avg. Volume: 4,446,991
• PEG Ratio: 0.92
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 7.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$26.93
• Price Target Upside: -9.20% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: HK$32.00 ▲(7.89% Upside)

Sinotruk Hong Kong's stock is supported by strong technical momentum and a solid financial foundation, despite challenges in cash flow efficiency. The valuation is reasonable, making it an attractive option for investors seeking growth with moderate income potential.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage indicates financial stability and low risk, enhancing the company's ability to invest in growth opportunities.

Revenue Growth

Steady revenue growth reflects the company's ability to expand its market presence and maintain demand for its products, supporting long-term business sustainability.

Cash Generation

Strong cash generation relative to net income suggests efficient operations and the ability to fund future investments without relying heavily on external financing.

Negative Factors

Declining Free Cash Flow

A significant decline in free cash flow growth can limit the company's ability to invest in new projects and respond to market opportunities, potentially hindering growth.

Margin Pressure

Decreasing margins indicate rising costs or pricing pressures, which can erode profitability over time and challenge the company's competitive position.

Profitability Concerns

Stable but slightly declining profit margins suggest potential challenges in maintaining profitability, which could impact long-term financial health if trends continue.

Sinotruk Hong Kong Business Overview & Revenue Model

Company Description

Sinotruk (Hong Kong) Limited, an investment holding company, engages in the research, development, manufacture, and sale of heavy-duty trucks (HDTs), medium-heavy duty trucks, light duty trucks (LDTs), buses, and related parts and components in Mainland China and internationally. The company operates through four segments: Heavy Duty Trucks, Light Duty Trucks and Others, Engines, and Finance. It offers specialty vehicles; industrial and construction machinery engines; HDT and LDT engines; and HDT key assemblies, such as gearboxes and various types of casting and forging, as well as cabins, axles, and steel frames. The company also provides axle and transmission parts and truck refitting services; deposit taking, borrowings, bank bills discounting, auto and supply chain financing, issue of bills, entrusted loans and investment, and customer credit services; loans; and consultation and strategic planning services. In addition, it imports and exports trucks and spare parts; manufactures and reproduces engines; and researches, develops, manufactures, and sells commercial vehicles. Sinotruk (Hong Kong) Limited serves infrastructure, construction, container transportation, logistic, mining, steel, chemical, and other industries. The company was incorporated in 2007 and is headquartered in Jinan, China. Sinotruk (Hong Kong) Limited is a subsidiary of China National Heavy Duty Truck Group Company Limited.

How the Company Makes Money

Sinotruk Hong Kong generates revenue primarily through the sales of its heavy-duty trucks and commercial vehicles. The company has multiple revenue streams including direct sales of vehicles, parts and components, and after-sales services. A significant portion of its income comes from exporting trucks to international markets, which is bolstered by strategic partnerships with overseas distributors. Additionally, the company benefits from government contracts and infrastructure projects, which provide consistent demand for its products. The growing trend of urbanization and infrastructure development in emerging markets also contributes to its revenue growth.

Sinotruk Hong Kong Financial Statement Overview

Summary

Sinotruk Hong Kong shows steady revenue growth and strong balance sheet with low leverage and high return on equity. However, cash flow efficiency is a concern due to declining free cash flow growth, which could impact future investments.

Income Statement

Sinotruk Hong Kong has shown a steady revenue growth rate of 2.29% in the latest year, indicating a positive trajectory in sales. The gross profit margin has slightly decreased to 15.64%, and the net profit margin is stable at 6.16%. The EBIT and EBITDA margins are healthy at 7.69% and 9.17%, respectively, reflecting good operational efficiency. However, the slight decline in margins compared to previous years suggests some pressure on profitability.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.14, indicating conservative leverage. The return on equity is robust at 14.23%, showcasing effective use of equity to generate profits. The equity ratio stands at 31.72%, reflecting a solid equity base relative to total assets. Overall, the balance sheet demonstrates financial stability and low risk.

Cash Flow

Sinotruk Hong Kong's cash flow performance shows a decline in free cash flow growth by 32.17%, which is a concern. The operating cash flow to net income ratio is 1.72, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio is 0.78, suggesting that a significant portion of earnings is not translating into free cash flow. This could impact future investment capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	97.12B	95.06B	85.50B	59.29B	93.36B	98.20B
Gross Profit	15.38B	14.87B	14.24B	9.95B	15.40B	19.59B
EBITDA	8.80B	8.71B	8.48B	3.38B	6.64B	10.94B
Net Income	5.99B	5.86B	5.32B	1.67B	4.32B	6.85B
Balance Sheet
Total Assets	140.25B	129.78B	121.79B	105.48B	107.02B	111.01B
Cash, Cash Equivalents and Short-Term Investments	37.71B	40.53B	48.19B	43.04B	32.37B	35.87B
Total Debt	6.66B	5.71B	5.05B	3.89B	3.51B	1.74B
Total Liabilities	88.97B	80.62B	73.82B	62.51B	64.25B	75.33B
Stockholders Equity	43.22B	41.16B	40.27B	35.91B	35.67B	32.12B
Cash Flow
Free Cash Flow	3.34B	7.84B	8.81B	9.46B	-5.73B	18.45B
Operating Cash Flow	4.75B	10.09B	11.37B	10.90B	-3.21B	19.49B
Investing Cash Flow	-4.13B	-8.66B	-11.06B	-18.61B	-36.68M	-5.90B
Financing Cash Flow	-4.35B	-4.78B	-470.96M	-1.85B	1.96B	-3.31B

Sinotruk Hong Kong Technical Analysis

• Last Price: 29.66

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3808, the sentiment is undefined. The current price of 29.66 is equal to the 20-day moving average (MA) of ―, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a undefined sentiment for HK:3808.

Sinotruk Hong Kong Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3808	76 Outperform	HK$81.89B	12.55	14.24%	4.77%	4.23%	-3.54%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1800	61 Neutral	HK$135.37B	3.64	6.85%	6.36%	-0.11%	-10.59%
1186	57 Neutral	HK$108.30B	3.05	8.32%	5.92%	-5.10%	0.34%

Sinotruk Hong Kong Corporate Events

Sinotruk Hong Kong Shareholders Approve 2026 Weichai Parts Purchase Agreement

Sinotruk (Hong Kong) Limited announced that its shareholders overwhelmingly approved, by poll, the ordinary resolution linked to the 2026 Weichai Parts Purchase Agreement and the related annual cap for transactions for the year ending 31 December 2026, at an extraordinary general meeting held on 22 December 2025. Despite the required abstentions from voting by the scheme trustee and majority shareholder CNHTC, independent shareholders representing a substantial portion of the free float supported the resolution, paving the way for continued parts procurement from Weichai under defined limits and reinforcing the company’s supply-chain arrangements and governance procedures for connected transactions.

The most recent analyst rating on (HK:3808) stock is a Hold with a HK$22.40 price target. To see the full list of analyst forecasts on Sinotruk Hong Kong stock, see the HK:3808 Stock Forecast page.

Sinotruk to Hold EGM for Approval of 2026 Weichai Parts Purchase Agreement

Sinotruk (Hong Kong) Limited has announced an extraordinary general meeting scheduled for December 22, 2025, to approve the 2026 Weichai Parts Purchase Agreement. This agreement is significant for the company’s operations as it involves ratifying and authorizing transactions and setting an annual cap for the year ending December 2026, which could impact Sinotruk’s supply chain and market positioning.

The most recent analyst rating on (HK:3808) stock is a Hold with a HK$22.40 price target. To see the full list of analyst forecasts on Sinotruk Hong Kong stock, see the HK:3808 Stock Forecast page.

Sinotruk Announces Voluntary Liquidation of Finance Subsidiary

Sinotruk (Hong Kong) Limited announced the voluntary liquidation of its subsidiary, Sinotruk Finance Co, following approval from the National Financial Regulatory Administration. The liquidation process, effective from November 10, 2025, will not adversely affect the financial position and business operations of the Sinotruk Group.

The most recent analyst rating on (HK:3808) stock is a Buy with a HK$32.00 price target. To see the full list of analyst forecasts on Sinotruk Hong Kong stock, see the HK:3808 Stock Forecast page.

Sinotruk Renews Key Connected Transactions with CNHTC and Weichai

Sinotruk (Hong Kong) Limited has announced the renewal of its continuing connected transactions with CNHTC and Weichai Holdings. The agreements, set to commence in 2026, involve a three-year finance lease and guarantee agreement with CNHTC and a one-year parts purchase agreement with Weichai Holdings. These transactions are significant as they involve the company’s controlling shareholders and are subject to specific reporting and approval requirements under Hong Kong’s Listing Rules. The renewal of these agreements is crucial for maintaining Sinotruk’s operational continuity and strategic partnerships, impacting its market positioning and stakeholder relations.

The most recent analyst rating on (HK:3808) stock is a Buy with a HK$29.00 price target. To see the full list of analyst forecasts on Sinotruk Hong Kong stock, see the HK:3808 Stock Forecast page.

Sinotruk Ji’nan Truck Co., Ltd. Reports Strong Financial Growth for 2025

Sinotruk Ji’nan Truck Co., Ltd., a subsidiary of Sinotruk (Hong Kong) Limited, reported its unaudited financial results for the nine months ending September 30, 2025. The company achieved a revenue of RMB 40.49 billion, marking a significant increase from the previous year’s RMB 33.59 billion. The net profit also rose to RMB 1.49 billion from RMB 1.25 billion, reflecting strong operational performance. These results underscore Sinotruk’s robust market position and potential for continued growth in the truck manufacturing sector.

The most recent analyst rating on (HK:3808) stock is a Buy with a HK$29.00 price target. To see the full list of analyst forecasts on Sinotruk Hong Kong stock, see the HK:3808 Stock Forecast page.