Movement Alert|WEICHAI POWER Rises 3.83% in Regular Trading, Imminent Hang Seng Index Inclusion Coupled with Investment Bank Buy Ratings Boost Sentiment

Market Focus09-03 09:35

On September 3, WEICHAI POWER rose 3.83% in regular trading, trading at HK$31.80 per share, with turnover of HK$149 million. The stock rebounded following several consecutive sessions of profit-taking after its interim results were released.

On the news front, Hang Seng Indexes Company previously announced its quarterly review results, confirming WEICHAI POWER will be added as a Hang Seng Index constituent stock. The change will be implemented after market close on September 4 and take effect on September 7, with passive fund allocation demand providing support for the share price. Goldman Sachs estimated that passive fund inflows into WEICHAI POWER could range between USD 160 million and USD 470 million. Meanwhile, Bank of America Securities raised its target price to HK$47.5 maintaining a Buy rating, while BOCOM International also maintained its Buy rating with a HK$44.5 target. The company reported H1 revenue of RMB 123.163 billion, up 8.85% year-on-year, with net profit of RMB 77.01 billion, up 36.46%, as Q2 net profit hit a record high of RMB 46.16 billion, surging 57.38%.

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