UBS initiates Sinotruk stock with Buy rating on strong export position

Published 28/08/2025, 16:08
UBS initiates Sinotruk stock with Buy rating on strong export position

Investing.com - UBS initiated coverage on Sinotruk Hong Kong Ltd (HK:3808) (OTC:SHKLF) with a Buy rating and a HK$31.00 price target on Thursday.

The Chinese commercial vehicle manufacturer commands over 40% market share of China’s truck exports, positioning it with a first-mover advantage and extensive global dealer network, according to UBS.

UBS expressed bullish sentiment on China’s truck exports through 2030, citing expectations that Chinese manufacturers will accelerate European Union market penetration through electric trucks.

The firm believes this electric truck export strategy could generate incremental sales while improving average selling prices and margins, with Sinotruk positioned as the primary beneficiary of this trend.

UBS projects 13-20% compound annual growth rates for Sinotruk’s revenue and net profit from 2024 to 2027, estimates that exceed consensus forecasts by 10%.

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