Weisheng Group (03393) orders were strong, and the target price was raised to 13 yuan J.P. Morgan

Motong published a report, maintaining the “buy” rating for Victory Group (11.32, 0.16, 1.43%) (03393.HK) and raised its net profit forecasts for 2015 and 2016 by 9% and 13%, respectively, to reflect the recent announcement that it won the bid for the mainland power grid contract and the strong growth in overseas orders. The target price was raised from $11 to $13, which is equivalent to 11.3 times the predicted price-earnings ratio.

Since 2013 and the beginning of 2014, the Group has invested heavily in R&D and promotion of new products, so last year's marketing expenses and R&D expenses have gradually declined. I believe the Group's continued deleveraging will support profit margin growth in the next few years.