[ET Net News Agency, 2 May 2018] HSBC Global Research lifted its target price for
Weichai Power (02338) to HK$12.4 from HK$12.1, and reiterated its "buy" rating.
The research house said Weichai's heavy-duty truck (HDT) sales volume increased 27% to
about 18,000 units, while the domestic market sold out 110,000-120,000 units (up 5%-15%)
in April, implying Weichai's market shares expanded to 15-16.4% (March: 14.8%). More than
50% of Weichai's sales volume was contributed by construction trucks (mainly chassis),
with the pick-up in infrastructure investment since the beginning of 2018 the key reason,
HSBC believes.
It expects Weichai's market share gains in both the HDT and heavy-duty diesel engine
markets, and continuing margin improvement to be key earnings drivers in 2018. HSBC
expects Weichai to see a higher average truck selling price due to its better product mix
and stronger negotiating power with distributors. (KL)
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02338 WEICHAI POWER
Nominal 
11.800 +0.180 (+1.549%) Others
02/05/2018 17:30
[I-bank focus]HSBC lifts Weichai Power (02338) to HK$12.4
| Remark: | Real time quote last updated: 24/09/2024 17:59 |
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