Sinotruk (3808 HK) Keep Moving up and Carry on

12 Jun 2023

Company Profile
As one of the leading heavy truck manufacturers in China, Sinotruk specializes in the heavy
trucks, light trucks, buses and related major powertrains and parts. With heavy trucks as the
main products, the Company serves a wide range of customers in the infrastructure,
construction, container service, logistics, mining, steel and chemical industries.
Investment Thesis
Despite a Trough in China’s Heavy Truck Industry, the Company Outperforms the Industry
Average in 2022
According to the data of, China’s heavy truck industry sold a total of 672
thousand units in 2022, down 720 thousand units or 52% yoy, of which the cumulative sales
volume of new energy heavy trucks was 25.1 thousand units, up 140% yoy. In 2022, affected
by multiple adverse factors such as the Covid-19 pandemic, economic slowdown, low
investment and consumption, sluggish freight, lack of confidence, and demand overdraft,
China’s heavy truck industry has seen a yoy decline in the sales volume for 12 consecutive
Sinotruk sold 158 thousand heavy trucks in 2022, down 44% yoy, a decrease significantly less
than the industry average of 52%. The Company occupied a share of 23.5% in China’s heavy
truck market, up 3.0 ppts over the same period last year, surpassing FAW Jiefang and
ranking first. We think that the reasons for Sinotruk’s increased market share despite
headwinds are mainly as follows: 1) In the domestic market, the Company has made certain
breakthroughs in the development of key segments and key customers. Dump trucks and
mixer trucks continued to maintain their competitive edge. The market share of highhorsepower tractors, trucks and special vehicles has grown significantly. 2) With the help of
Sinotruk International’s network layout and strategic breakthroughs, the Company’s export
sales volume of heavy trucks reached a new high during the reporting period, increasing by
65% yoy to 89 thousand units, accounting for 56% of the Company’s total sales volume of
heavy trucks, and maintaining the first place in China for 18 consecutive years.

About the author

Zhang Jing

Phillip Securities (HK)

Bachelor Degree in Tongji University of Engineering; Master Degree in East China Normal University of finance. Currently covering the automobile and air sectors. She has years of experience in investment research and is good at combining analysis for the companies with industry prospects.

Latest Reports

Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you


This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

This advertisement has not been reviewed by the Monetary Authority of Singapore.  


Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066