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-大华银行凯贤表示，潍柴动力的毛利率可能仍将受到高原材料成本的拖累，将2022-2023年的毛利率预期从19.3%下调至19.0%。该公司还将这家发动机制造商2022年和2023年的净利润预期分别下调了4%，至人民币121.8亿元和人民币140.6亿元。然而，该经纪商维持对该股的买入评级，因为它认为，在补充库存需求和基础设施投资回升的推动下，销售量可能从2022年第一季度开始回升。(投行观点)大华银行凯贤将潍柴动力目标价从20港元下调至19港元该公司股价跌0.4%，报13.48港元。(yongchang.chin@wsj.com)