HK Stock Market Move | Weichai Power (02338) rises more than 4%, the proportion of high-end products in data centers is significantly increasing, AIDC diesel engines are expected to drive company performance growth.

Weichai Power (02338) rose by more than 4%, rising by 3.71% as of the time of writing, to reach 16.22 Hong Kong dollars, with a turnover of 79.9429 million Hong Kong dollars. Haitong released a research report stating that according to the investor relations event record of Weichai Power, the company's large cylinder diameter products are comprehensively laid out and widely used in various niche markets such as data centers and public utilities. The company continues to create customized solutions for customers with efficient and flexible project delivery capabilities, with all types of products having significant global competitiveness. The company's M-series large cylinder high-speed engines are in full production and sales, with continued optimization of product structure, and a significant increase in the proportion of high-end products represented by data center-related businesses. The company will seize the opportunity of global industry development, leverage product technology advantages, accelerate the capture of key high-end markets such as data centers, and further enhance market share and profitability. The bank believes that large cylinder diesel engines as important backup power sources for AI infrastructure have rapidly developed in the industry in recent years with continued investment in AI infrastructure. Weichai Power is a mainstream manufacturer of large cylinder diesel engines, continuously investing in research and development and market aspects, and its products already have global competitiveness. It is optimistic about the company's performance growth driven by the continuous performance growth brought about by domestic substitution in the downstream high-speed development background. As a leading domestic diesel engine enterprise, Weichai has a scale advantage in developing AIDC diesel engines. It is optimistic about the growth of the company driven by AIDC diesel engines. At the same time, it believes that the domestic heavy truck market is expected to moderately recover by 2025, and the fundamental base of Weichai's heavy truck chain business is expected to be further consolidated.