HK Stock Market Move | Weichai Power (02338) is now down more than 4%, with wholesale heavy truck sales for the whole year slightly decreasing year-on-year. UBS states that LNG truck demand is expected to rebound in the first quarter.

Weichai Power (02338) is currently down more than 4%, as of the time of writing, it is down 3.75% at 12.84 Hong Kong dollars with a trading volume of 127 million Hong Kong dollars. On the news front, according to preliminary data from the First Commercial Vehicle Network, China's heavy truck wholesale volume in December 2024 was 79,000 units, increasing by 52% and 15% compared to the same period last year. Sealand pointed out that the annual wholesale sales volume of heavy trucks was fixed at 897,000 units, a decrease of 1.6% year-on-year. The wholesale trend in the fourth quarter of the single month and the annual wholesale and domestic wholesale sales volume are all in line with expectations. A report from UBS pointed out that Weichai Power's stock performance in the second half of last year lagged behind the Hang Seng Index, as electric trucks quickly gained market share under higher subsidies and lower operating costs. However, on a quarterly basis, with the cost of liquefied natural gas (LNG) falling since the fourth quarter of last year, the bank expects the market demand for LNG trucks to rebound in the first quarter of this year. The bank believes that the risks of electric trucks have been reflected in the stock price, and investors may overlook the potential rebound in LNG truck demand in the first quarter of this year and the potential for Weichai to expand into electric vehicles.