[ET Net News Agency, 24 September 2019] Morgan Stanley raised its target price for
Weichai Power (02338) to HK$13 from HK$8.1 and upgraded its rating to "equal-weight" from
"underweight".
The research house said the potential rising engine supply ratio to Sinotruk is likely
to offset market share loss risk in other truck OEMs (i.e. FAW) in 2019-20, given the
current HDT (heavy-duty truck) sales downtrend.
Morgan expects Weichai to start supplying engines to Sinotruk, especially for 10L and
below 10L engines, accounting for over 50% of Sinotruk's total engine sales. Sinotruk has
launched China VI models assembled with Weichai engine since 2019, based on recently
announced road vehicle new products list.
Morgan also raised its net profit estimates to Rmb9.5bn and Rmb8.8bn in 2019-20,
respectively, reflecting a better product mix as well as its secured market share
expectation. (KL)
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02338 WEICHAI POWER
Nominal 
16.400 -0.140 (-0.846%) Others
24/09/2019 17:10
{I-bank focus}Morgan upgrades Weichai Power (02338) to HK$13
| Remark: | Real time quote last updated: 25/04/2024 10:30 |
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