Citigroup Keeps Buy Rating and HK$50 Target Price on Weichai Power (02338), Q3 Core Net Profit In Line with Expectations

Stock News10-30

Citigroup has released a research report maintaining its "Buy" rating and HK$50 target price on Weichai Power Co.,Ltd. (02338).

The company reported third-quarter revenue of RMB 58 billion, up 1% year-on-year and down 4% quarter-on-quarter, beating market expectations by 2%. Core net profit, excluding one-off items, came in at RMB 3.22 billion, up 14% year-on-year and up 3% quarter-on-quarter, broadly in line with expectations.

The bank noted that Weichai Power Co.,Ltd. (02338) recorded net profit attributable to shareholders of RMB 2.957 billion in the third quarter, down 9% year-on-year. This was mainly due to a fair value loss of RMB 390 million on its stake in Ballard Power Systems, compared with a bad debt reversal of RMB 410 million in the same period last year. In addition, the company booked a foreign exchange loss of RMB 200 million, versus a foreign exchange gain of RMB 100 million a year earlier, while its effective tax rate rose to 20.4% from 17.5% in the prior-year period.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment