According to its February production & sales express issued today, the company's sales volume is 7, 526 (+76% mom and 25% yoy), among which business vehicle of Ford Transit reported to be 211,5 (+30.15% yoy), and JMC truck reported 262,7 (+40.86% yoy).
Our Analysis and Estimation
The company's operation status keeps well.
The company readies for policy of "light truck to the countryside" while positioned itself in the mid-high end market.
Nationalized motor engine progressed smoothly.
Investment Suggestion
We predict that the company's EPS in 2008-2010 at Rmb0.84, Rmb0.82 and Rmb1.06. Given its potential growth and a relatively high ROI from investors, we project that a reasonable valuation is at 15x-17x. Calculated based on EPS0.84 in 2008, the company's reasonable share price should be Rmb12.6-Rmb14.28 per share, and we hereby maintain rating of "Recommended" for the counter.