Citigroup: Target price of HK$50 for the “buy” rating for Weichai Power (02338)

The Zhitong Finance App learned that Citi released a research report saying that Generac (GNRC.US) has reached a long-term supply agreement with Amazon to provide backup generators for Amazon's data center; the bank rated Weichai Power (02338) as a “buy” with a target price of HK$50.

According to the report, the initial delivery amount is expected to total 2.4 billion US dollars from 2027 to 2028. The bank believes that it forms a positive interpretation of Weichai Power. Since Weichai is the core supplier of GNRC, it is expected to benefit from the continued increase in backlog orders. It is estimated that potential shipments related to 2027/28 will contribute 478 million to 1,075 million US dollars in revenue.