[ET Net News Agency, 21 January 2021] Credit Suisse initiated coverage on Haitian
International (01882) with an "outperform" rating and a target price of HK$34.21.
The research house said Haitian is the largest PIMM (plastic injection molding machine)
maker in China with about 40% market share, largely ahead of its peers. Credit Suisse sees
it unlikely that its dominating position will be challenged in at least the next five
years.
Credit Suisse expects robust demand on PIMM to continue in 2021, driven by manufacturing
FAI (fixed-asset investment) recovery, especially in the auto and home appliance sectors.
From a long-term perspective, Credit Suisse believes there is a further upside from
plastics production consumption and Haitian's global expansion.
Credit Suisse also expects a margin rebound in 2021, thanks to more large-size machines,
continuously ramping up of third-generation PIMM and economies of scale achieved with
enhanced capacity, with Wuxi and Mexico production base. It forecast Haitian's net profit
will grow 23%/19%/8% in 2020/21/22. (KL)