[ET Net News Agency, 26 February 2021] Daiwa Research lifted its target price for
Weichai Power (02338) to HK$28.4 from HK$25.7 and reiterated its "buy" rating.
Weichai Power announced it is going to list its subsidiary Torch Sparkplugs on the
Shenzhen GEM Board. The research house thinks this action aims to strengthen Torch's R&D
capability and enhance profitability.
Daiwa noted that Torch contributed CNY72m net profit to Weichai in 2019 and its net
assets stood at CNY603m as of end-2019. It considers Torch to have limited synergy with
Weichai's own powertrain, automobile and logistics segments, and thus, Weichai will put
more resources and efforts into the development of its core businesses after the listing.
Daiwa slightly lifted its 2021-22 EPS forecasts by 2% to factor in its new engine volume
growth and margin assumptions. (KL)
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02338 WEICHAI POWER
Nominal 
11.800 +0.180 (+1.549%) Others
26/02/2021 15:01
{I-bank focus}Daiwa lifts Weichai Power (02338) to HK$28.4
| Remark: | Real time quote last updated: 24/09/2024 17:59 |
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