JP Morgan: Raises Weichai Power's (02338) target price to 22.8 Hong Kong dollars, rating it as "overweight"

JP Morgan released a research report stating that Weichai Power (02338) has underperformed since July, lagging behind major indices and key competitors including its subsidiary Kion. With the significant recovery of the Chinese heavy-duty truck market and the elimination of resistance to Kion's restructuring, there is more confidence in its prospects for the third quarter. The target price has been raised from HK$22 to HK$22.8, with a "hold" rating, believing that the current valuation is very attractive. With the resurfacing of the China-US tariff issue as a market focus, the company is believed to be in a favorable position to benefit from import substitution opportunities in heavy-duty trucks, engineering machinery engines, and AIDC engines, as its main competitors Cummins and Caterpillar face increasing risks of tariffs and trade restrictions.