SINOTRUK (03808) dropped more than 5% during afternoon trading. At the time of writing, the stock was down 5.1% to HK$34.64, with a turnover of HK$91.65 million. According to data from the China Association of Automobile Manufacturers, China's truck market sold 240,400 units in February, down 26% month-on-month and 14% year-on-year. Within this, the heavy-duty truck segment sold 73,600 units, declining 30% from the previous month and 10% from a year earlier. Analysts attributed the year-on-year and month-on-year decreases in February wholesale sales of heavy trucks primarily to the Spring Festival holiday period, noting that the peak sales season is expected to arrive after the Lantern Festival. It was pointed out that with the confirmation of the continued implementation of the heavy truck "scrappage and replacement" policy in 2026, domestic heavy truck sales are projected to reach 760,000 units that year, representing a 5.3% year-on-year decline. Despite the relatively high base of heavy truck sales in 2025 due to the noticeable effects of the replacement policy, domestic logistics activity remains reasonably healthy. Given the high replacement base from 2017 to 2021, the decline in heavy truck sales is expected to be limited. Overall, wholesale sales in 2026 are forecast to reach 1.16 million units, up 1.5% year-on-year, while exports are anticipated to maintain growth.