Weichai Power's Margins Likely Weighed by Higher Raw Material Costs -- Market Talk
Weichai Power's Margins Likely Weighed by Higher Raw Material Costs -- Market Talk
0722 GMT - Weichai Power's gross margins are likely to remain weighed by high raw material costs, UOB Kay Hian says, trimming estimates for the company's gross margin over 2022-2023 to 19.0% from 19.3%. It also cuts the engine maker's net profit forecasts for both 2022 and 2023 by 4% to CNY12.18 billion and CNY14.06 billion, respectively. However, the broker keeps its buy rating on the stock as it believes a pickup in sales volumes is likely from 1Q 2022, driven by restocking demand and a pick-up in infrastructure investment. UOB Kay Hian cuts Weichai Power's target price to HK$19.00 from HK$20.00. Shares are 0.4% lower at HK$13.48. (yongchang.chin@wsj.com)
0722GMT-大華銀行凱賢表示，濰柴動力的毛利率可能仍將受到高原材料成本的拖累，將2022-2023年的毛利率預期從19.3%下調至19.0%。該公司還將這家發動機製造商2022年和2023年的淨利潤預期分別下調了4%，至人民幣121.8億元和人民幣140.6億元。然而，該經紀商維持對該股的買入評級，因為它認為，在補充庫存需求和基礎設施投資回升的推動下，銷售量可能從2022年第一季度開始回升。(投行觀點)大華銀行凱賢將濰柴動力目標價從20港元下調至19港元該公司股價跌0.4%，報13.48港元。(yongchang.chin@wsj.com)