Bank of America Securities: Raise Weichai Power (02338) target price to 21.5 Hong Kong dollars, third-quarter net profit beats expectations.

Bank of America Securities released a research report stating that considering the third quarter performance, Weichai Power's earnings per share forecast for 2025 to 2027 have been raised by 1%, 2%, and 2% respectively. The target price for the Hong Kong stock has been increased from 20.4 Hong Kong dollars to 21.5 Hong Kong dollars, while the target price for the A-share has been raised from 20.4 Chinese yuan to 20.5 Chinese yuan, reaffirming a "buy" rating. Weichai Power's third quarter revenue was 57.4 billion Chinese yuan, a year-on-year increase of 11%, which was also 11% higher than the bank's expectations. The gross profit margin was 21.4%, a decrease of 0.7 percentage points year-on-year and quarterly, which was 0.4 percentage points lower than the bank's expectations, due to the increased proportion of low-margin heavy truck business revenue. Net profit increased by 30% year-on-year to 3.2 billion yuan, exceeding the bank's expectations.