HK Stock Market Move | Weichai Power (02338) rose more than 4% in the morning, with competitors facing tariff risks. The company is expected to benefit from import substitution in the heavy truck sector.

Weichai Power (02338) rose more than 4% in the morning, rising 4.38% to 15.24 Hong Kong dollars with a turnover of 1.5 billion Hong Kong dollars at the time of publication. JP Morgan released a research report stating that Weichai Power's stock price has not performed well since July. With the return of the US-China tariff issue to the market's focus, the company is believed to be in a favorable position and can benefit from import substitution opportunities for heavy trucks, construction machinery engines, and AIDC engines, as its main competitors Cummins and Caterpillar face increasing risks of tariffs and trade restrictions. The bank pointed out that with the significant recovery of the Chinese heavy truck market and the elimination of resistance to the Kion restructuring, it is more confident in the company's prospects for the third quarter. The target price has been raised from 22 Hong Kong dollars to 22.8 Hong Kong dollars, with a "hold" rating, believing that the current valuation is very attractive.