The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that it maintains Weichai Power's (02338) “increase in holdings” rating and predicts that the company's net profit for the first quarter of 2024 will reach 2.6 billion yuan, which means a year-on-year increase of about 40%, and heavy truck sales are expected to outperform its peers. The company's earnings estimates for this year and next two years were raised by about 2% each, and the target price was raised from HK$22 to HK$23.
The report points out that even though the outlook for domestic demand for heavy trucks in the mainland is slowing down, the company's market share in various major product categories has increased. Coupled with increased efficiency and rising profit margins driven by continuous product portfolio changes, the bank continues to be optimistic about the company's performance growth prospects and offset concerns about the slowdown in demand for heavy trucks.