Investment Rating - The report maintains a "Buy" rating for China National Heavy Duty Truck Group Co., Ltd. (3808.HK) [1] Core Views - The company expects a net profit attributable to shareholders of approximately RMB 3.07 to 3.42 billion for H1 2024, representing a year-on-year growth of 30% to 45% [2] - The company has solidified its leading position in the market, with a market share of 27.6% and a year-on-year sales growth of 7% [2] - The gas heavy truck segment has shown significant growth, with sales increasing by 273% year-on-year [2] - Export demand remains strong, with the company achieving a 40% share of the heavy truck export market [2] - The company's stock incentive plan reflects confidence in future performance, with ambitious revenue and profit margin targets set for 2024-2026 [2] Summary by Sections Financial Performance - The company forecasts revenue of RMB 85.5 billion for 2024, with a growth rate of 18.65% [3] - The net profit attributable to shareholders is projected to be RMB 6.5 billion for 2024, reflecting a growth rate of 22.19% [3] - Earnings per share (EPS) is expected to increase from RMB 1.93 in 2023 to RMB 2.35 in 2024 [3] Market Position - The company has maintained its leading position in the heavy truck market, with a cumulative sales volume of 139,000 units in H1 2024 [2] - The launch of the new HOWO-TS7 gas truck is anticipated to enhance the company's competitiveness in the gas vehicle market [2] Export and International Strategy - The heavy truck industry exported 152,000 units in H1 2024, with the company exporting 62,900 units, maintaining its top position in the industry [2] - The company set a record for monthly exports in February 2024, shipping 14,000 units [2] Future Outlook - The stock incentive plan aims for revenue targets of RMB 94.8 billion, RMB 109.1 billion, and RMB 125.5 billion for 2024, 2025, and 2026 respectively [2] - The company expects to achieve a net profit margin of at least 7.5% in 2024, increasing to 8.5% by 2026 [2]
中国重汽：龙头地位得以巩固，盈利能力持续增强