Group 1: Production and Sales Performance - In the first eight months of 2025, China's heavy truck market cumulative sales reached 71.1 thousand units, representing a year-on-year growth of approximately 14% [2] - In August alone, the heavy truck market sold about 8.7 thousand units, showing a month-on-month increase of 2% and a year-on-year increase of approximately 39% [2] - The company has maintained a growth trend in production and sales compared to the same period last year, with a relatively full order book since the third quarter [2] Group 2: New Energy Heavy Truck Development - In the first eight months of 2025, cumulative sales of new energy heavy trucks reached 113.7 thousand units, with a year-on-year growth of 180% [3] - The company's sales of new energy heavy trucks have outpaced the industry growth rate [3] - The new energy heavy truck sector is experiencing rapid development, driven by policy support and technological innovation [3] Group 3: Subsidiary Business Overview - The axle company is a subsidiary in which the company holds a 51% stake, providing products to the group's vehicle manufacturing units, ensuring stable market demand and revenue [3] - The aftermarket company, a wholly-owned subsidiary, focuses on truck aftermarket services, including parts, oil products, and after-sales services [3] Group 4: Accounts Receivable Management - The company's accounts receivable increased year-on-year due to a 14.1% rise in sales in the first half of 2025, which correspondingly increased accounts receivable [3] - The company plans to implement a comprehensive management approach to control accounts receivable, including pre-approval, process management, and post-monitoring [4] Group 5: Inventory Management - The company emphasizes inventory control, maintaining a healthy and manageable inventory level through continuous internal process optimization [5][6] - Future strategies will focus on dynamic and lean inventory management to ensure market supply while optimizing inventory structure for high-quality development [6]

Group 1: Dividend Policy - The company aims to maintain a sustainable and stable cash dividend policy as a core strategy for returning value to investors, with plans to continue cash dividends in the mid-term for 2025 [2] - The company will consider various factors such as current share capital, operational performance, future funding needs, and development plans to balance long-term sustainable growth with shareholder returns [2] Group 2: New Energy Heavy Trucks - In the first eight months of 2025, China's new energy heavy truck sales reached 188,000 units, reflecting a year-on-year growth of 9.80% [3] - The company’s new energy heavy trucks are growing in line with industry trends, supported by policy incentives and technological innovations [3] Group 3: Market Outlook for Heavy Trucks - In 2025, the heavy truck industry saw a year-on-year sales increase of 47% in August, indicating a strong market performance despite seasonal trends [3] - The outlook for the second half of 2025 is positive, driven by ongoing economic recovery, the "old-for-new" policy stimulating demand, and expansion into overseas markets [3]

Core Viewpoint - The rapid growth of China's new energy heavy truck market is evident, with a cumulative sales increase of nearly 80,000 units in the first half of 2025, marking a year-on-year surge of 186% and achieving a "29 consecutive months" growth trend [1][5][12] Group 1: Market Trends - The new energy heavy truck market has seen a doubling growth in 16 months since 2024, indicating a strong and irreversible development momentum [1] - The penetration rate of new energy in the heavy truck market reached approximately 22.3% in the first half of this year, with pure electric trucks accounting for nearly 22% [11] - The market for long-distance transportation, which exceeds 500 km, represents over 50% of the heavy truck market, with an annual demand exceeding 560,000 units, presenting a significant opportunity for new energy heavy trucks [12] Group 2: Challenges and Solutions - Despite the growth, challenges remain, particularly in the long-distance trunk transportation sector, where issues such as short range, low refueling efficiency, and inadequate infrastructure persist [12][14] - The "supercharging and quick swapping" initiative aims to address the refueling efficiency of electric heavy trucks by creating a comprehensive infrastructure system that combines high-power charging and battery swapping technologies [16] - The construction of a "charging, swapping, and supercharging" network is proposed to reduce investment pressure on operators by utilizing existing power facilities and upgrading them to meet diverse refueling needs [17] Group 3: Industry Collaboration - A recent high-level seminar in Tianjin brought together representatives from various authoritative institutions and over 40 related companies to discuss breakthroughs in electric heavy trucks for long-distance transportation [3] - The initiative emphasizes the importance of collaboration among industry players to establish a unified, efficient, and economically viable refueling network for heavy trucks [15][19]

Group 1: Export Performance - The company has maintained its position as the leading exporter in the domestic heavy truck industry for several consecutive years, achieving a strong reputation and solid user base in overseas markets [2] - Current export performance remains robust, with products primarily covering key regions such as Africa, Southeast Asia, Central Asia, and the Middle East, while also making progress in emerging markets [2] Group 2: Development of New Energy Heavy Trucks - In the first half of 2025, the cumulative sales of new energy heavy trucks in China reached 6.59 million units, representing a year-on-year growth of 194%, with 1.48 million units sold in June alone, showing a consistent upward trend [3] - The company has demonstrated good performance in the new energy heavy truck sector, with sales also maintaining a growth trajectory [3] - The new energy heavy truck industry is in a rapid development phase, driven by policy support and technological innovation, with an expanding trend towards electrification in short- and medium-distance transportation scenarios [3] Group 3: Dividend Policy - The company places high importance on shareholder returns, continuously increasing the dividend payout ratio over the past five years to reward investors [3] - Future dividend policies will be determined by a comprehensive assessment of market conditions, operational performance, cash flow, and future funding needs, aiming to balance company growth with shareholder interests [3]

Group 1: Production and Sales Performance - In the first half of 2025, China's heavy truck market cumulative sales reached approximately 300,000 units, representing a year-on-year growth of about 6% [2] - In June 2025, the heavy truck market sold around 92,000 units, with a month-on-month increase of 4% and a year-on-year increase of 29% [2] - The company's production and sales performance is good, maintaining a growth trend compared to the same period last year, outperforming the industry average [2] Group 2: Export Situation - The company relies on its subsidiary, Heavy Truck International, to achieve product exports, maintaining a leading position in the industry for 20 consecutive years [3] - Export products are primarily sold to key markets in Africa, Southeast Asia, Central Asia, and the Middle East, with continuous breakthroughs in emerging markets [3] - The export business is steadily developing, with the company holding a leading market share in the heavy truck industry [3] Group 3: New Energy Heavy Truck Development - In the first five months of 2025, cumulative sales of new energy heavy trucks in China reached 6,120 units, showing a year-on-year increase of 195% [3] - It is expected that new energy heavy truck sales will continue to exceed 10,000 units in June 2025, with a year-on-year growth of over 100% [3] - The new energy heavy truck industry is in a rapid development phase, with the company focusing on product technology innovation to enhance competitiveness and steadily increase market share [3] - Future growth in the new energy heavy truck sector is anticipated due to advancements in smart technology, lightweight design, and "three electric" technologies [3]

Core Viewpoint - China National Heavy Duty Truck Group (China National Heavy Truck) is experiencing positive growth in production and sales, particularly in the heavy truck market, with a notable increase in the sales of new energy trucks, while facing challenges in the natural gas truck segment. Group 1: Production and Sales Performance - In the first five months of 2025, the heavy truck market in China recorded cumulative sales of approximately 441,000 units, reflecting a slight year-on-year increase of about 2% [1][2] - In May 2025, sales reached approximately 89,000 units, showing a year-on-year increase of 14% and a month-on-month growth of 1% [1][2] - The company’s production and operational performance is strong, with overall production and sales growth outpacing the industry, and maintaining a leading market share in the domestic heavy truck sector [1][2] Group 2: New Energy Truck Development - In the first five months of 2025, cumulative sales of new energy heavy trucks in China reached 61,200 units, representing a significant year-on-year growth of 195% [1][3] - May 2025 saw sales of 15,100 units, with a year-on-year increase of 190%, and a market penetration rate of 23.92% [1][3] - The company is continuously increasing its market share in the new energy sector, and with advancements in technology, the new energy heavy truck industry is expected to have substantial growth potential [1][3] Group 3: Natural Gas Truck Outlook - Cumulative sales of natural gas heavy trucks in China for the first five months of 2025 totaled 78,000 units, showing a year-on-year decline of 16% [1][4] - In May 2025, sales of natural gas trucks were 14,000 units, reflecting an 18% decrease compared to the previous month [1][4] - The company’s sales of natural gas heavy trucks are in line with industry trends, and with ongoing technological improvements and the inclusion of natural gas trucks in the "old-for-new" subsidy policy, the company aims to leverage these benefits for strategic growth [1][4]

Group 1: Sales Performance - From January to May 2025, the heavy truck market in China recorded cumulative sales of approximately 43.75 thousand units, showing a slight year-on-year increase of about 1% [2] - In May 2025, the heavy truck market sold approximately 85 thousand units across various models, representing a year-on-year increase of about 9% [2] - The company's production and sales performance is good, with growth compared to the same period last year, outperforming the industry average [2] Group 2: Policy Impact - The "old-for-new" policy introduced in March 2025 aims to accelerate the elimination of old vehicles, positively impacting the new energy and natural gas heavy truck markets [3] - The new policy includes subsidies for scrapping and purchasing natural gas heavy trucks, promoting the industry's transition towards greener and more efficient solutions [3] Group 3: New Energy Heavy Trucks - From January to May 2025, cumulative sales of new energy heavy trucks in China reached 51 thousand units, marking a significant year-on-year increase of 195% [3] - The new energy heavy truck sector is experiencing rapid growth, driven by policy support and technological innovation, with an expanding trend towards electrification in short- and medium-distance transportation [3] - The company is committed to deepening its focus on the new energy sector, enhancing product innovation and application scenarios to continuously optimize products and increase market share [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) with a target price of 26.82 CNY [1][5] Core Views - The company's performance is in line with expectations, benefiting from the heavy truck replacement policy [4] - The heavy truck market is anticipated to see significant growth due to the implementation of the old-for-new policy, expected to take effect in the second quarter of 2025 [9] - The company has shown strong growth in the new energy heavy truck segment, with a 177% year-on-year increase in sales [9] Financial Performance Summary - For Q1 2025, the company reported revenue of 12.908 billion CNY, a year-on-year increase of 13.0%, and a net profit attributable to the parent company of 310 million CNY, up 13.3% year-on-year [9] - The company's gross margin for Q1 2025 was 7.1%, a decrease of 0.7 percentage points year-on-year, while the operating cash flow was negative 3.189 billion CNY [9] - Revenue projections for 2025-2027 are 52.463 billion CNY, 59.996 billion CNY, and 67.621 billion CNY, respectively, with corresponding year-on-year growth rates of 16.8%, 14.4%, and 12.7% [7][12] Earnings Forecast - The forecasted EPS for 2025-2027 is 1.49 CNY, 1.82 CNY, and 2.16 CNY, respectively [5] - The average PE ratio for comparable companies in 2025 is estimated at 18 times, aligning with the target price of 26.82 CNY [5] Market Position - The company holds a leading market share of 28.0% in the heavy truck sector, with a sales volume of 74,200 units in Q1 2025, despite a 3.2% year-on-year decline [9] - The new energy heavy truck sales reached 4,231 units in Q1 2025, representing a 177% increase year-on-year, with a market share of approximately 14% [9]

Investment Rating - The investment rating for the company is "Buy" (maintained) with a target price of 26.82 CNY [1][5] Core Views - The company's performance is in line with expectations, benefiting from the heavy truck replacement policy [4] - The heavy truck market is anticipated to see significant growth due to the implementation of the old-for-new policy, expected to take effect in the second quarter of 2025 [9] - The company has shown improvement in profitability and market share in the heavy truck sector [3][9] Financial Performance Summary - Revenue for 2023 was 42,070 million CNY, with a year-on-year growth of 46.0%. Forecasted revenues for 2025, 2026, and 2027 are 52,463 million CNY, 59,996 million CNY, and 67,621 million CNY respectively, with growth rates of 16.8%, 14.4%, and 12.7% [7][12] - Operating profit for 2023 was 1,774 million CNY, with a significant year-on-year increase of 207.0%. The forecasted operating profits for the next three years are 2,866 million CNY, 3,415 million CNY, and 4,057 million CNY, reflecting growth rates of 28.5%, 19.2%, and 18.8% [7][12] - Net profit attributable to the parent company for 2023 was 1,080 million CNY, with a remarkable year-on-year growth of 405.5%. Forecasted net profits for 2025, 2026, and 2027 are 1,751 million CNY, 2,140 million CNY, and 2,541 million CNY, with growth rates of 18.4%, 22.2%, and 18.7% [7][12] Market Position and Trends - The company maintained a leading market share of 28.0% in the heavy truck sector, with sales of 74,200 units in the first quarter of 2025, despite a slight decrease of 3.2% year-on-year [9] - The new energy heavy truck segment is experiencing rapid growth, with a 117% year-on-year increase in sales, positioning the company third in market share at approximately 14% [9] - The company is actively expanding its export markets, particularly in Africa, Southeast Asia, Central Asia, and the Middle East, while also exploring opportunities in the Americas, Australia, and Eastern Europe [9]