Under the weak market conditions and slumping automobile sector last week, Weichai Power's stock price rebounded on January 6th, getting rid of the dilemma of falling together with auto stocks, and hitting a new high of 68.59 yuan, which is a strong performance. In the next two trading days, the continuation was continued, and a new record high of RMB 69.99 was reached. It was only a step away from the 70 RMB mark. According to the investigation and analysis of the reporter, the major incentive for the stock price soaring may be the company's two major positive expectations. From the current situation of the company's per-capital reserve fund and undistributed profits per share, the expectation of high annual turnover for the 2009 annual report is strong. In addition, there are reports that Weichai Power continued to maintain strong growth in sales of all products in the fourth quarter of 2009. In particular, the sales of diesel engines in December increased by 21% from November to reach 40,000 units with a 12-month high. At the same time, sales of diesel engine-related products also continued to grow in the fourth quarter.
69.99 yuan, Weichai Power shares hit a new high rebound!
Perhaps it is not uncommon for a new stock to reach a record high, but in the weak market and slumped automobile sector last week, Weichai Power has been hitting a new high by breaking the market and is actually surprising. In the end, what are the reasons for it to withstand the crash of the auto stocks, stock prices have risen steadily? According to a survey conducted by the reporter, there are currently two favorable prospects for Weichai Power, which may be a major incentive to trigger the stock's soaring stock price.
Two big expectations
After Weichai Power formally acquired Yangchai Power, the next step will be to reorganize the Asian Starbus! Weichai Power's 2009 annual report will implement a 10 to 10 high delivery program. Weichai Power's December 2009 sales data exceeded expectations...
At the beginning of the new year in 2010, all the good rumors about Weichai Power quickly spread on the Internet. Under the stimulation of these rumors, Weichai Power's share price finally finally stabilized on Wednesday (January 6th). The dilemma of falling auto stocks also hit a new high of 68.59 yuan. This strong performance continued in the next two trading days and reached a new high of 69.99 yuan, only one step away from the 70 yuan mark. remote.
Judging from the transaction data, on Wednesday (January 6th), Weichai Power's share price suddenly soared and institutional funds actively participated. Five institutions swept the top five buyers of the stock, and the amount of purchases was as high as 257 million yuan. One institution even purchased 939.903 million yuan madly, which exceeded the sum of the total sales of the top 5 selling 937.838 million yuan on the same day. It can be seen that the agency is particularly favored by Weichai Power.
So, did many of the rumors of Weichai Power's truthfulness come from? The reporter called Weichai Power, but the company's staff said that the company's secretary-general Dai Lixin and securities affairs representatives were on business trips and could not be confirmed. However, it is worth noting that regarding the company’s sales data exceeding expectations, recently an overseas investment bank has issued a report on Weichai Power’s H-shares, which reported that Weichai Power’s sales volume for all products in the fourth quarter of 2009 continues to maintain strong growth momentum. In particular, the sales of diesel engines in December increased by 21% from November to 40,000 units with a 12-month high, while sales of diesel engine-related products also continued to increase in the fourth quarter.
In view of this, the current sales data of Weichai Power is indeed good, and industry sources have told reporters that the reason why the share price of Weichai Power soared was due to the company's high expectations of transfer and sales data exceeding expectations.
Outstanding performance
Since Weichai's power performance has been outstanding in recent years, during the quarterly report and annual report period, the stock is considered the top stock for high transfer, and the rumors on the market naturally come. As early as the middle of last year, there were media reports that Weichai Power had sent 10 to send 1.75 yuan for 10 years. However, the company denied the rumor because it did not have the basic conditions for sending shares and converting stocks.
As of the third quarter of 2009, Weichai shareholders achieved a net profit of 2.382 billion yuan, and the undistributed profits per share of capital reserve and per share were as high as 2.59 yuan and 8.28 yuan respectively. Some market participants believe that from the current situation of the company's per-capital reserve fund and per-share undistributed profits, it is not impossible for the 2009 annual report to achieve high delivery, and the expectation is very strong. detailed arrangement. In addition, from the company's pre-disclosure date, the disclosure of the company's annual report will be after the end of the year, and on the 27th of the year near the end of the disclosure period of the annual report.
Since the expectation of high turnover is very strong, is the company's operating conditions worth looking forward to?
Everbright Securities recently released research report analysis that the country will introduce the logistics revitalization plan details, the automobile trade-in policy subsidies standard will be increased from 6,000 yuan to 18,000 yuan, gradually cancel the road toll of the second and third grade roads, as well as the railway freight price increase and the old car skin A series of policies, such as scrapping, will make heavy truck consumption expected to exceed market expectations. Weichai Power, as an auxiliary vehicle manufacturer, will accumulate inventory when the vehicle sales are good. Therefore, the engine plant sales will exceed the industry growth, and the company’s subsidiary, Shaanxi Heavy Industries, will increase its production capacity to 100,000 units. While other rivals, such as Foton Motors, were restricted by the production capacity and could not enjoy the substantial growth of the industry, the increase in market share led to an increase in performance. On the other hand, some competitors may temporarily “help†Weichai customers to increase their market share due to technical problems, which will result in sales of Weichai engines surpassing market growth.
Low valuation
Weichai Power's product development capability ranks in the forefront of the domestic industry. The company's WD615 and WD618 diesel engines have an average occupancy rate of over 75% in the heavy-duty automotive and construction machinery markets. In recent years, the 10L/12L high-power diesel engine has maintained its market leadership. Its industry leading position is obvious. At present, the stock price of the company has reached a record high. Does it still have investment value?
Guojin Securities has issued a research report saying that for the demand of the heavy truck industry in 2010, it is expected that there will be a 15% increase in sales. With the GDP growth rate of more than 8%, the heavy truck industry will maintain a growth rate of at least 10% or more. Weichai Power's earnings per share for 2009 to 2011 were 4.24 yuan, 4.74 yuan, and 4.85 yuan, corresponding to 13 times, 12 times, and 12 times the dynamic price-earnings ratio for 2009 to 2010. Such a low valuation level is enough to cover future possibilities. The risk arises that the stock price of the company is attractive enough to raise the company's target price to 85 yuan.
Orient Securities auto industry analyst Qin Xuwen also released a research report on January 7th that the continued strong demand for road freight heavy truck products is an important driver of heavy truck sales. In addition, the major downstream vehicle manufacturers of Weichai Power, such as Shaanxi Heavy Duty Truck, Foton Motors, and North Benz, have a clear competitive advantage in the heavy-duty truck market (310368, fund), and these companies' heavy-duty trucks are on road freight. The share of heavy-duty truck products in the market is close to 50%. When the road freight heavy truck product market continues to prosper, the company's product sales will fully benefit. Heavy truck product sales continued to exceed expectations and will be a catalyst for the company's stock price, giving a target price of 90 yuan, and maintaining a "buy" investment rating.
Shiya Wanxin Tools Factory , http://www.zjspiritlevels.com