Glonghui, March 12 | Morgan Stanley published a research report stating that the penetration rate of liquefied natural gas (LNG) models rose sharply from 5% in the fourth quarter of 2022 to 22% due to higher oil and gas price differences than expected after entering the heating season. The bank expects the growth trend of LNG heavy trucks (HDT) to continue in the first half of this year. The oil and gas price spread has widened to more than 30% since mid-January. It is estimated that the oil and gas price spread may widen further after the heating season ends in March, which means that LNG HDT sales will continue to improve. On the export side, it is mainly affected by Russia's inventory removal. Damo currently expects total HDT sales to increase 6% year-on-year to 25,500 units in the first quarter of this year, and maintain the forecast of sales of 1 million units for the whole year. Based on the latest expectations for LNG HDT sales and industry exports, the bank believes that Weichai's profit in the first half of the year will be more resilient. It predicts that revenue and profit for the first quarter will increase by 12% and 39%, and the growth slowdown is expected to be small. Therefore, it is more optimistic about Weichai in the short term, raised the target price from HK$18 to HK$18.4, and raised the net profit forecast for 2023 to 2024 by 5% and 2% to $9.1 billion and $11 billion. Based on last year's positive profit, Sinotruk's net profit forecast for 2023-2025 was raised by 34%, 22% and 20%, and the target price was raised from HK$18 to HK$23. The rating was “increased”, and the valuation was considered attractive.