Jingu Caixin | Weichai Power (02338) stock price rose in early trading and maintained a high level in the afternoon. At the time of publication, it was reported at HKD 12.06, up 3.43%, with a turnover of HKD 0.121 billion.
On the news front, Tan Xuguang, Chairman of Weichai Power, applied to resign from the positions of Chairman/Legal Representative, Director, Chairman of the Strategic Development and Investment Committee, etc. due to his age. The company elected Director Ma Changhai as the Chairman of the seventh Board of Directors and the Chairman of the Strategic Development and Investment Committee, and as the Legal Representative of the company.
In this regard, Morgan Stanley's report pointed out that the market should have a slight negative impact on the relevant news, but it provides opportunities to build positions because the company's strategy and operation have a good foundation, and the valuation is attractive. Weichai H shares are currently priced at a forecast PE ratio of 8.5 times this year and 7 times next year. The bank expects the company's net profit in the next two years to grow by 25% each year, with a total market value of 110 billion yuan and net cash of about 50 billion yuan at the end of last year, estimated to have a free cash flow of 20 billion yuan each in the next two years.
