By Yifan Wang
Sinotruk (Hong Kong) Ltd. shares jumped Tuesday regardless of the truck maker warning that its full-year revenue might fall by greater than half, as buyers held hopes for a rebound in 2023.
The inventory rose as a lot as 6.1% and was just lately 3.2% greater at 13.60 Hong Kong {dollars} (US$1.74).
The beneficial properties got here after Sinotruk late Monday mentioned it expects web revenue for 2022 to fall by 55% to 65% on account of China’s macroeconomic slowdown and pandemic-related logistics disruptions, which weighed on truck gross sales.
However buyers appeared previous the anticipated earnings hunch, with China’s swift reopening and pro-growth insurance policies underpinning the market’s confidence in a fast restoration for Sinotruk within the new 12 months.
Citi analysts in a be aware referred to as the 2022 earnings steerage “worse than market and Citi expectations.” Nonetheless, China’s faster-than-expected reopening and the bettering fixed-asset funding and financial actions ought to assist the business’s rebound, the analysts mentioned.
The analysts raised their goal worth on Sinotruk to HK$15.50 from HK$12.40 whereas sustaining a purchase name.
Write to Yifan Wang at yifan.wang@wsj.com
