China Yuchai International’s 1HFY2021 results were below expectations and topline weakness could extend into the second half, says CGS-CIMB Research analyst Ong Khang Chuen.

That said, margins are set to improve in 2HFY2021F, as the New York Stock Exchange-listed company charges towards “an electrified future”, adds Ong. 

Hence, while Ong is maintaining “add” on China Yuchai International, he is cutting the target price to US$19 from $21.50, which still represents a 34.8% upside. 

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