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2026-11-05 12:20:52 WEICHAI POWER (02338.HK) closed at HKD23.64 by midday, down 5.36%, with trading volume of 22.8628 million shares and turnover of HKD549 million. HSBC Global Investment Research said in a research report that WEICHAI POWER's third-quarter results were broadly in line with the broker's preview, with weak traditional heavy truck operations and fair value losses from the Ballard investment weighing on earnings. The broker believes the recent share price correction has made the risk-reward profile attractive, while the multi-year growth story of the AIDC power business remains intact and could become a potential re-rating catalyst in 2027. The broker said the AIDC power business remained solid, with 1,300 diesel backup engines delivered in the third quarter, compared with 900 units in the second quarter and 500 units in the first quarter. It estimated the segment contributed about 30% of third-quarter net profit. The broker expects fourth-quarter deliveries of 1,300 diesel backup engines and 200 gas generator sets, driving AIDC power net profit to rise 351% YoY and account for 38% of group net profit. For 2027, it expects deliveries of 6,000 diesel engines and 2,000 gas generator sets, with AIDC power net profit rising 180% YoY and accounting for 47% of group net profit. The broker lowered its earnings forecasts for WEICHAI POWER and cut the valuation multiple for the AIDC power business from 26x PE to 22x PE. Based on SOTP valuation, it lowered the H-share TP from HKD50 to HKD42 and the A-share TP for WEICHAI POWER (000338.SZ) from RMB42 to RMB34. The Buy rating was maintained. (ad/u)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |