CMB International: Slightly reduce the target price of Weichai Power (02338) to HK$44.7 and renew the “buy” rating

The Zhitong Finance App learned that CMB International published a research report indicating that after the Weichai Power (02338) performance conference, it maintained a positive view of it, raised the company's 2026-28 earnings forecast by 2% to 7% after incorporating the AIDC gas generator sales forecast, and slightly lowered the target price of H shares from HK$45.1 to HK$44.7, maintaining a “buy” rating.

The bank said that Weichai Power has signed an AIDC gas generator package agreement with Hyperscalers, a major American cloud service provider, and the business order is highly visible. In addition, sales of AIDC diesel generator sets are on track, and sales are expected to reach 4,000 units and 6,000 units in 2027 and 2028, respectively. On the other hand, since Weichai's generator sets are mainly used for off-grid power generation, I believe the impact of the US Executive Order on the company's power equipment is manageable.