HK Stock Market Move | Weichai Power (02338) rose more than 4% in early trading, and in many places, high-speed tolls for hydrogen fuel vehicles have been reduced. There is a significant increase in demand for diesel engines in data center power generation.

Weichai Power (02338) rose more than 4% in early trading, up 4.25% to HK $13.26 as of the close, with a turnover of HK $98.9793 million. On the news front, the General Office of the People's Government of Henan Province recently issued a notice on promoting the economic "red envelope" policies for the first quarter of 2025, stating that from January 25, 2025 to December 31, 2025, hydrogen-powered trucks using the province's toll roads will be exempt from tolls. According to the Beijing Centergate Technologies Hydrogen Industry Alliance, this is the seventh provincial support policy in China to exempt hydrogen-powered vehicles from high-speed tolls across the province. In addition, the construction of AI data centers has brought about a large demand for electricity, with high requirements for the reliability and stability of power supply. HAITONG INT'L pointed out that considering the power range of diesel generators used for data center backup power is between 1-4MW, it is estimated that the total number of diesel generators used for data center backup power worldwide will need to reach the level of 100,000 units by 2028. Therefore, we believe that there is a high incremental demand for diesel engines in data centers, with a focus on leading diesel engine company Weichai Power.