[ET Net News Agency, 7 February 2018] HSBC Global Research raised its target price for
Weichai Power (02338) to HK$11.3 from HK$10.8, and maintained its "buy" rating.
The research house said Weichai's heavy-duty trucks (HDT) business had a bumper one-off
year in 2017. Sales vol rose 111% y-y to 173,000 units, giving it a record high market
share of 15.5%.
In an industry context, China's overall HDT sales rose 52% y-y to 1.12m units. Weichai's
market share gain in 2017 was at the expense of Jianghuai, Dayun and other out-of top 10
players. Weichai targets 2018 sales vol to rise 15.6% y-y, but HSBC thinks this too
bullish - the company is operating close to full capacity.
It forecast a sales volume rise of 3% for Weichai, taking market share to 19.5%. This
would still be a good performance as we think industry-wide sales will fall 18% y-y.
Factoring in higher sales volume estimates in 2017 and further market share gains for
2018-19, HSBC raised 2017/18/19 net profit forecasts by 15%/7%/6%. (KL)
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02338 WEICHAI POWER
Nominal 
16.440 +0.040 (+0.244%) Others
07/02/2018 15:22
[I-bank focus]HSBC raises Weichai Power (02338) to HK$11.3
| Remark: | Real time quote last updated: 26/04/2024 12:37 |
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