SINOTRUK (03808) surged more than 4%, reaching a record high of HK$34.16. As of the time of writing, the stock was up 4.53% to HK$34.14, with a turnover of HK$138 million.

Citi recently issued a research report stating that, based on strong fundamentals, positive industry prospects, favorable policies, and cash flow outlook, it has raised its dividend payout ratio forecast for SINOTRUK for fiscal years 2025 to 2027 to 60%, 70%, and 70% respectively.

The bank also increased its net profit forecast by 1% to 2%, to 7.1 billion yuan, 8.3 billion yuan, and 9.1 billion yuan respectively.

Citi raised its target price for SINOTRUK from HK$26.4 to HK$39.4, maintaining a "Buy" rating.

Data shows that in December 2025, China's truck market sold a total of 361,000 units, an increase of 7% month-on-month and 17% year-on-year.

Within this, the heavy-duty truck market sold 102,700 units in December, a decrease of 9% month-on-month but an increase of 22% year-on-year.

Guotai Haitong Securities believes domestic logistics activity remains decent, and given the high replacement base from 2017-2021, it expects the decline in heavy truck sales to be limited.

Looking at overall wholesale sales, the firm believes 2026 volume could reach 1.16 million units, up 1.5% year-on-year, with exports expected to maintain growth.