Fuyao Group (3606 HK): Overseas layout will finally start to be paid back March 5, 2018

Investment Summary

  • Exchange Loss Causes the Results of 2017Q3 to Decrease by 1.5%
  • Core Profit Increase is Great, and Q3’s Net Profit Actually Rises by 20%
  • Enhancing the Market Share and Better Sales Structure
  • Overseas Business is Entering the Right Path, Global Expansion is being Continually Advanced

Investment Thesis

Stable position in the industry, the continuous optimization of product mix, and high dividend rate provide a greater margin of safety for the Company’s share price. The sound development of overseas business will bring high resilience of earnings, which is promising.

We maintain the “Accumulate” rating,with target price to be HK$ 34, equivalent to 16x  P/E for 2018.

About the author

Profile photo of Zhang Jing

Zhang Jing
Phillip Securities (HK)

Bachelor Degree in Tongji University of Engineering; Master Degree in East China Normal University of finance. Currently covering the automobile and air sectors.She has years of experience in investment research and is good at combining analysis for the companies with industry prospects.

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