China Yuchai reported a “robust” 16.3% y-o-y growth in engine unit sales of 192,743 units in 1HFY2024 ended June, which, according to China Association of Automobile Manufacturers, outpaced the industry’s growth of 4%.
DBS Group Research analysts Derek Tan and Dale Lai have reinstated coverage on Hong Leong Asia (SGX:H22
) with a “buy” call and a higher target price of $1.28 from $1.02. The new target price represents a 59% upside to Hong Leong Asia’s last-traded price of 80.5 cents as at Oct 10.
In their Oct 11 report, Tan and Lai like Hong Leong Asia’s prospects as they believe the company is placed to capture China’s upgrade momentum. Hong Leong Asia has two key business segments; one of them is the building materials segment that supports the regional construction industry while the other is the designing, manufacturing and selling of heavy-to-light duty engines under NYSE-listed company, China Yuchai.
