[ET Net News Agency, 4 September 2018] Credit Suisse raised its target price for
Sinotruk (Hong Kong)(03808) to HK$8.4 from HK$8, and maintained its "underperform" rating.
The research house said Sinotruk's 1H net profit of Rmb2,304mn was above market
expectation. Credit Suisse increased its 2018-20 earnings forecasts by 2-13%, based on
higher profit estimates for light truck and finance segment.
It noted that Sinotruk's HDT sales volume started its down cycle with 17% YoY drop in
July, according to CAAM data. The company's 10k units (down 20% YoY) production plan for
both August and September indicates that the down cycle will continue in 2H.
There might be speculation on merger between Sinotruk Group and Weichai Group, as
Weichai's chairman Tan Xuguang has been appointed as the chairman of Sinotruk Group.
Credit Suisse believes such a merger may improve Sinotruk's efficiency in the long run,
but will result in higher near-term costs due to personnel and business restructure. (KL)
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03808 SINOTRUK
Nominal 
19.160 -0.520 (-2.642%) Others
04/09/2018 09:40
[I-bank focus]Credit Suisse lifts Sinotruk (03808) to HK$8.4
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