Aug. 28 (Bloomberg) -- Sinotruk Hong Kong Ltd., China’s biggest heavy-truck maker, said first-half net income surged 77 percent as demand rose for commercial vehicles.
Net income increased to 839.6 million yuan ($123.5 million), or 0.30 yuan a share, from a revised 475.1 million yuan, or 0.22 yuan a share, a year earlier, the company said in a Hong Kong exchange statement yesterday evening. Sales rose 53 percent to 22.2 billion yuan, it said.
Sinotruk sold more vehicles as government stimulus spending increased demand for heavy trucks. It will also start selling buses this year to improve profitability, Hong Kong-based Sinotruk has said.
Sinotruk also said yesterday that it will pay 325 million yuan for 80 percent of Chengdu Wangpai Automobile Group Ltd., a joint venture that will make of commercial vehicles, commercial vehicle frames, auto parts, tractors and mechanical products.
The acquisition will broaden the company’s customer base and enhance its market position and production capacity, Sinotruk said in a Hong Kong stock exchange filing.
MAN SE, Europe’s third-largest truckmaker, plans to introduce heavy trucks with partner Sinotruk in China next year, MAN Chief Executive Officer Georg Pachta-Reyhofen said yesterday. MAN holds a 25 percent stake in Sinotruk.
Sinotruk fell 0.8 percent to HK$7.54 in Hong Kong trading yesterday, before the announcement. The stock has declined 17 percent this year, compared with the 5.8 percent drop in the city’s benchmark Hang Seng Index.
To contact the reporter on this story: Liza Lin in Singapore at firstname.lastname@example.org
To contact the editor responsible for this story: Kae Inoue at email@example.com