Analysts at Citigroup have released a research report on SINOTRUK (HKEX: 03808). According to the report, the company's management has revised its export sales volume guidance for the 2026 fiscal year upward from the previous range of 180,000 to 190,000 units to a new range of 200,000 to 220,000 units. The management also anticipates a year-on-year improvement in net profit per exported vehicle.

Regarding the domestic heavy-duty truck market, the management has increased its industry sales forecast for the 2026 fiscal year to 850,000 units. The penetration rate of new energy heavy-duty trucks is expected to reach 35%.

In response to the upgraded guidance, Citigroup has raised its net profit forecasts for Sinotruk for the 2027 and 2028 fiscal years by 10% each. Consequently, the bank has increased its target price for the stock from HK$51 to HK$55 and reiterated its "Buy" rating.

Citigroup estimates that Sinotruk's revenue for the first half of the year will grow by 40% year-on-year to reach 71 billion yuan, with a gross profit margin of 16%. The net profit, excluding foreign exchange gains and losses, is projected to be 4.8 billion yuan.

Factoring in an estimated foreign exchange loss of approximately 500 million yuan for the first half, the forecasted net profit stands at 4.28 billion yuan, representing a 25% increase compared to the same period last year.