Morgan Stanley released a research report, which raised profit forecasts for China National Heavy Duty Truck Group (02333.HK) for the fiscal years 2024 and 2025 by 13% and 7% respectively, to reflect the stronger profit prospects brought about by export growth, and will significantly ease the tepid sales performance in the mainland.

According to Morgan Stanley, China National Heavy Duty Truck Group's launch of its "Tank" series reflects the company's high-end product continuity. However, compared with its peers, China National Heavy Duty Truck Group's electric vehicle strategy is relatively conservative. The bank believes that although China National Heavy Duty Truck Group's export performance remains strong, its sales channel restructuring may take longer to complete and will affect its sales performance in the mainland market in the short term.

Based on the above factors, Morgan Stanley raised the target price for China National Heavy Duty Truck Group from HKD 11.5 to HKD 12.2 and gave it a 'synchronized with the market' rating. (js/cy)

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