Shares of Sinotruk (HKEX: 03808) have surged more than 8%. At the time of writing, the stock is up 7.99% to HK$45.14, with a trading volume of HK$261 million.

Policy Support for New Energy Vehicles

The recent surge is linked to a new policy initiative. Eleven government departments, including the Ministry of Transport and the National Development and Reform Commission, jointly released an implementation plan for promoting the large-scale application of new energy heavy-duty trucks. The plan sets a clear target: by 2030, the penetration rate of new energy heavy-duty trucks should reach 40%, with a stock exceeding 1.6 million vehicles, accounting for approximately 20% of the total heavy-duty truck fleet. This move aims to accelerate the green and low-carbon transition within the transportation sector. New energy heavy-duty trucks are defined as heavy goods vehicles with a total mass of 12 tonnes or more that utilize new power systems.

Export and Domestic Growth Drivers

Analysts point out that Sinotruk is a leading domestic heavy-duty truck manufacturer and is well-positioned to benefit significantly from the major export trend to Africa and Southeast Asia. The core rationale for optimism regarding exports to these regions lies in their substantial potential for per capita GDP growth. Infrastructure development, logistics expansion, and mining activities are expected to drive increased demand for heavy trucks.

Domestic Market Recovery

On the domestic front, the implementation of vehicle replacement programs and the expected replacement cycle for National V emission standard trucks are anticipated to lead to an improvement in domestic heavy-duty truck sales. Furthermore, as Sinotruk scales up its production of new energy heavy-duty trucks, its profitability is also expected to improve.