Weichai Power reported revenue of RMB 13.16 billion in the first quarter of 2013 (1Q2013), which was a 2.8% decrease. Net profit attributable to mothers was RMB 810 million, which was a decrease of 20.7%. Net profit attributable to non-returned property was RMB 810 million, a decrease of 16.2%. Basic EPS 0 .41 yuan. Revenue decreased slightly year-on-year The company's 1Q2013 revenue was 13.16 billion yuan, a decrease of 2.8% as compared with -7.3% and -12.7% in 4Q2012 and 3Q2012. The decline has been continuously narrowed. The parent company's 1Q2013 revenue was 5.92 billion yuan, which was an increase of 9.9%. The growth rate was significantly improved compared to the 21.7% of 4Q2012. The improvement of the parent company's revenue mainly comes from the stabilization of product sales and the optimization of sales structure. In 1Q2013, the parent company sold 106,000 engines, a year-on-year increase of 105,000 units in 1Q2012. The sales volume of heavy-duty truck customers in the first quarter and the increase in market share of large-engine passengers contributed to the sales of high-power engines in the first quarter of the parent company. As a result of the increase in the proportion, sales have improved significantly due to the fact that the total sales have been basically stable. The subsidiary, Shaanxi Heavy Duty Truck 1Q2013, sold 20 thousand heavy trucks, a reduction of 17.2% (industry -17.0%), of which total vehicle sales were 0.6 million, which was a 41.3% decrease (industry 22.3%), which dragged down the company's revenue performance. The gross profit margin rose slightly, during which the company's 1Q2013 gross margin was 21.1%, which was a 1.4 pct increase. Sales expenses and management expenses increased by 23.5% and 25.4% respectively, resulting in an increase of 2.4 pct. to 11.3%. The company's 2012 asset adjustments and the increase in R&D expenses this year will affect the cost of this year's period. However, in 1Q2013, the high sales and management fees are over-provisioned, and the growth rate will be reduced in the third quarter. Asset impairment and investment income reduced operating profit The company's asset impairment in 1Q2013 increased by 50.8% to 220 million yuan, and investment income decreased by 104.4% to -0.03 million yuan, which together reduced operating profit by 140 million yuan. Changes in asset impairment and investment income mainly come from the increase in accounts receivable during the reporting period and the adjustment of company assets in the previous year. During the same period, non-operating income decreased by 73.0% to RMB 0.2 billion, and income tax also decreased by 37.5% to RMB 140 million, which was a year-on-year increase in net profit contribution of RMB 30 million. Earnings forecasts and investment advice The heavy-duty truck industry will stabilize and rebound in 2013, which will benefit the company's revenue performance; the company's gross profit margin will remain stable, and the period cost rate will also fall back in the third quarter. We expect the company's 13/14 EPS to be 1.89/2.23 yuan respectively, and maintain the company's overweight rating. Washing and Ironing Appliances Midea , https://www.mideagroups.com