Shares of Sinotruk (Hong Kong) Limited (HKG:3808) plummeted 5.15% during intraday trading on Thursday, following the release of its first-half 2025 financial results. The heavy-duty truck manufacturer reported a slight increase in profits, but fell short of market expectations on the revenue front, leading to a sharp sell-off.
According to the company's Hong Kong Stock Exchange filing, Sinotruk's profit attributable to equity shareholders rose to 3.43 billion yuan in the first half of 2025, up from 3.29 billion yuan in the same period last year. Earnings per share increased to 1.25 yuan, slightly beating analysts' estimates of 1.21 yuan. However, revenue growth disappointed investors, climbing only to 50.9 billion yuan from 48.8 billion yuan, significantly below the 53.11 billion yuan forecast by analysts at Visible Alpha.
The market's negative reaction to Sinotruk's results underscores investors' concerns about the company's top-line growth in a challenging economic environment. While the profit increase and declared interim dividend of HK$0.74 or 0.68 yuan per share might typically be seen as positive factors, the revenue miss appears to have overshadowed these achievements. The sharp decline in share price suggests that investors may be reassessing Sinotruk's growth prospects and market position in the competitive heavy-duty truck sector.