Since the publication of the Weichai Company Interim Report, the company's share price has increased by 19.6%, far exceeding the 3.89% increase in the auto and parts segment. In the August 29 report, we clearly stated that the company's first-half results exceeded expectations, and it is expected to maintain its second-quarter economy in the second half of the year. Its annual performance is expected to be “low before and after highâ€, and the company’s 2009 full-year performance forecast is raised. We believe that the recent rise in the company's stock price reflects the market's correction of the pessimistic expectations of the heavy truck industry and the improvement of the company's full-year performance expectations.
From the point of view of the company's full-year performance in FY09, the company's operating conditions were lower in the first quarter. The sales in the second quarter broke the pattern of the traditional off-season and the sales volume rebounded quickly. It is expected that the sales volume in the third quarter will return to a higher level in history, and is expected to maintain in the fourth quarter. High position.
The economic recovery will inevitably accompany the improvement of road logistics. The sales of semi-trailer tractors in the second half of the year should be better than that in the first half of the year. We expect the market share of Shaanxi Zhongqi will rebound significantly in the second half of the year compared with the first half of the year. The company's engine sales will also benefit from this. .
The company's gross profit margin is closely related to the scale of production and sales as well as the price changes of the main raw material steel. In the second quarter, due to the rapid recovery of production, the gross profit margin of the company continued to rise, reaching 22.72%, especially the gross profit margin of the engine, which quickly rebounded due to volume.
We maintain our forecasts for the company's 2009, 2010 and 2011 earnings per share of 3.3, 3.5, and 3.59 yuan. The company's current valuation is still low, and maintain its rating on the company's recommendation.
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