Gelonghui, March 27 | BOC International said that Sinotruk's revenue in 2023 increased 43.9% year-on-year to 85.498 billion yuan, and net profit surged 217.9% year-on-year to 5.32 billion yuan, 2% higher than the market and the bank's expectations. Mainly, heavy truck sales recorded a strong recovery in 2023 and improved profit margins due to scale effects. Sinotruk paid a year-end dividend of HK$0.965 per share, increasing the dividend ratio from 46.2% in 2022 to 50.1% in 2023. In the first two months of this year, Sinotruk's heavy gas truck sales increased by 259% year-on-year, in line with the bank's previous report expecting Sinotruk to develop heavy natural gas trucks. The bank believes that as Sinotruk increases sales of heavy natural gas trucks, there is room for further increase in market share. The bank slightly raised its 2024/2025 profit forecast. As an industry leader, Sinotruk will benefit from the recovery in heavy truck sales, and its market share is expected to increase further. The bank raised its target price to HK$26.49 to correspond to a 10-fold projected price-earnings ratio in 2024. The current price corresponds to the 2024 forecast dividend rate of 5.3%, maintaining the “buy” rating.