STOCKS | Weichai Power Q2 Profit Jumps 57.4% As Broker Keeps Buy Rating

East Asia Securities said Weichai Power reported second-quarter revenue of RMB60.6 billion, up 8.8% year on year, while net profit attributable to shareholders rose 57.4% to RMB4.62 billion, according to ETNet. Excluding investment gains and foreign-exchange effects, core net profit increased 38% to RMB3.7 billion. Engine revenue climbed 21.4% to RMB31.22 billion, while overall gross margin slipped 0.6 percentage point to about 21.5% as domestic competition intensified and higher metal raw-material costs weighed on margins. The broker said first-half revenue and net profit accounted for about 48% and 43% of full-year Bloomberg consensus forecasts, broadly in line with expectations. It added that Weichai is shifting from a traditional heavy-truck power leader into an integrated energy equipment supplier benefiting from AI power infrastructure demand, with improved order visibility for diesel backup units and gas generators. East Asia Securities also said SOFC business commercialization could become a key catalyst for valuation re-rating. It set a target price of HK$45 and maintained a Buy rating.