CMBC International: Raises Weichai Power (02338) target price to 21.9 Hong Kong dollars, maintains "Buy" rating.

CICC International released a research report stating that they have raised the target price of Weichai Power (02338) from 19.5 Hong Kong dollars to 21.9 Hong Kong dollars, an increase of 12%, while maintaining a "buy" rating. Based on the bank's latest industry forecast, they have raised profit forecasts for 2025-27 by 1-5%. The bank expects the demand growth rate for the heavy truck industry in 2026 to slow down to 3% year-on-year, mainly due to the high base formed by the accelerated sales growth since 2025. Nevertheless, the bank expects the group to continue benefiting from the explosive growth momentum of the data center backup power engine business. The bank expects the group's total engine sales volume (all categories) in 2025/26 to increase by 8% and 3% respectively, with expanded profit margins, mainly due to the high demand for heavy trucks in 2026, as well as the increased contribution of high-margin data center engines.