Weifu (000581.CH): The high-growth momentum of result will continue in H2 October 19, 2017

  • High-speed boom of heavy truck market drives the high growth of the result in H1
  • The gross margin increased by 1.2 ppts
  • Steady financial structure, sufficient cash guarantee
  • The high-growth momentum of result will continue in H2

Investment Thesis

Valuation

As analyzed above, we expected diluted EPS of the Company to RMB 2.3 and 2.55 for
2017/2018. And we accordingly gave the target price to 30.58, respectively 13.3/12x P/E for
2017/2018. “Buy” rating. (Closing price as at 17 Oct 2017)

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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