HK Stock Market Move | Weichai Power (02338) rose more than 6% with February heavy truck market sales increasing month-on-month and year-on-year. Large-bore engines are expected to drive the company's value revaluation.

Weichai Power (02338) rose more than 6%, and as of the time of writing, it was up 6.02% at HKD 16.2, with a trading volume of HKD 199 million. On the news front, according to preliminary data obtained by the First Commercial Vehicle Network, in February 2025, China's heavy truck market recorded sales of around 80,000 vehicles, up 11% from January and a significant increase of 34% from the same period last year's 59,800 vehicles. From January to February this year, the cumulative sales volume of China's heavy truck market reached 152,000 vehicles, with a year-on-year cumulative decrease narrowing to 3%. In addition, Weichai recently launched the new generation WP16NG4.0 gas power, with the delivery of the 800,000th gas-powered vehicle. Morgan Stanley issued a research report maintaining a "buy" rating on Weichai Power, raising its H-share target price from HKD 16 to HKD 20, and listing it as a preferred stock. The bank expects Weichai's net profit to achieve double-digit growth during the period from 2025 to 2026, supported by a moderate rise in the heavy-duty truck (HDT) cycle and the use of large-bore engines for power systems in artificial intelligence data centers. The bank pointed out that investments by ByteDance and Alibaba in cloud computing and AI infrastructure will drive China's AI investments into a strategic acceleration phase, and in the long run, the accelerated development of large-bore engines and new energy businesses should lead to a reevaluation of Weichai Power's valuation.