{I-bank focus}Daiwa lifts Weichai Power (02338) to HK$28.4

    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.