CICC has released a research report indicating that SINOTRUK (03808) delivered first-half results that surpassed expectations, with revenue climbing 39.2% year-on-year to RMB 70.84 billion and net profit attributable to shareholders rising 26.2% year-on-year to RMB 4.33 billion.

The revenue and net profit growth driven by an improved product mix exceeded the broker's forecasts, and profits after excluding exchange rate effects came in above its projections as well.

Considering the company's robust heavy-duty truck sales and strong export performance in the first half, alongside expectations that its new energy heavy-duty trucks could turn profitable in the second half of the year, CICC has raised its net profit forecasts for 2026 and 2027 by 6.9% and 10.2%, respectively, to RMB 8.481 billion and RMB 9.658 billion.

The broker maintains an "Outperform" rating on the stock. In tandem with the upward earnings revisions, and driven by the continued strength in exports and the promising outlook for new energy heavy-duty trucks, which support a higher valuation, CICC has lifted its target price by 19.7% to HK$57.11.