[ET Net News Agency, 25 January 2018] Credit Suisse lifted its target price for
Sinotruk (Hong Kong)(03808) to HK$11 from HK$9.6, and maintained its "neutral" rating.
The research house said key surprise from Sinotruk's positive profit alert is
higher-than-expected margin from operating leverage. It revised up its 2017-18 earnings
estimates by 12-18%, with a higher margin and heavy truck volume assumption.
But Credit Suisse expects Sinotruk's earnings to peak in 2017 and had forecast 16%/7%
YoY earnings decline in 2018/19 amid the declining sector-wide heavy truck demand.
Sinotruk's monthly heavy truck sales declined by 6%/5% YoY in November/December 2017. (KL)