Daiwa has released a research report raising the target price for SINOTRUK (03808) to HK$29.4, a 35% increase from the previous HK$21.7, while maintaining an "Outperform" rating. The firm expects strong overseas demand for Chinese-made heavy trucks next year as the U.S. enters an interest rate-cutting cycle. Additionally, it anticipates sustained domestic stimulus policies, such as trade-in incentives, to support local heavy truck demand.

Daiwa highlights SINOTRUK's leading position in China's heavy truck market and projects further growth in its global market share. The bank has also revised its revenue forecasts for 2025–2027 upward by 0%–1%, reflecting a stronger-than-expected recovery in domestic heavy truck sales driven by trade-in subsidies. Due to economies of scale, Daiwa raised its gross margin forecast for 2025–2027 by 0.2–0.3 percentage points.

With improved industry sales prospects, the target price-to-earnings (P/E) ratio has been adjusted from 8.5x to 9.8x, reflecting a shift in valuation benchmarks.