China Merchants Weichai Power (02338) recorded a YoY increase of approximately 45% in net profit for this year's Q2, reaching RMB 2.95 billion.
According to the report released by JPMorgan, Weichai Power (02338) experienced intraday decline yesterday which may be attributed to the sluggish sales of heavy-duty trucks (HDT) in China in June, as well as the weak sentiment of Chinese exporters. The bank believes that yesterday's decline was excessive and provides an opportunity to buy on dips. Due to the company's attractive valuation and positive outlook on the company's performance, JPMorgan continues to view the company as a stable growth story with an appealing price. The target price is 23 HKD per share, and it recommends 'buy' for both A-share and H-share.