China bank increases Wei Chai dynamic AH share target price maintain buy rating

China Bank International released the latest research report, Weichai Power (000338-CN;02338-HK) recently launched the new EGR (Exhaust gas recirculation) engine. The introduction of the product will make Weichai in the market competition to occupy a favorable position; The government's stimulus package has since February 09 boosted demand for the heavy truck industry, and the restructuring of the parent company is expected to have limited impact on the company's business operations over the next 1-2 years. At present, Weichai H-Shares and a shares of the corresponding 09-year P/E is 11.1 times times and 15.6 times times respectively, the valuation is not expensive.　　In view of the recovery in market confidence, the target price of H-shares was raised from HK $26.00 to HK $33.80, and the target price of a-share was raised from 36.8 to 46.00 Yuan respectively, corresponding to 13 times times and 20 times times the 09 forecast p/E ratio. Weifang Diesel Power A shares fell 2.33% in Tuesday, reported 35.15 Yuan.