Weichai (2338 HK) Countercyclical Policy to Secure High Demand of Infrastructure April 27, 2020 606

PSR Recommendation: ACCUMULATE Status: Maintained
Target Price: HKDHKD15.60

Investment Summary
Annual Sales Volume was Better than Expectation
The year of 2019 has witnessed a continued booming in the heavy truck industry in China.
The annual sales of heavy trucks hit a fresh record of 1.174 million units, according to data
from CAAM (China Association of Automobile Manufacturers). It drove the annual sales of
Weichai engines to 742,000 units, up by 10.1% yoy, Shaanxi Heavy Duty Automobile to
161,000 trucks, up by 5.2% yoy, and Fast Gear to 1.002 million units, up by 10.2% yoy.

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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