JP Morgan: Considers Weichai Power (02338) as one of the top industrial stocks for next year, expecting potential for revaluation. Target price is 31 Hong Kong dollars.

JPMorgan released a research report, stating that Weichai Power (02338) is considered one of the top stocks in the industrial sector for 2026. They maintain a "buy" rating with a target price of HK$31. The bank pointed out that founder and former chairman Tan Xuguang announced his retirement in August 2024, causing investors to worry about a potential strategic decoupling between Sinotruk Jinan Truck (03808) and Weichai. However, with former senior executive Wang Zhijian assuming the position of chairman of Sinotruk Jinan Truck and the parent company Shandong Heavy Industry Group at the end of last month, it is anticipated that the strategic continuity risk between the leadership and the companies will be alleviated. JPMorgan also noted that the demand for heavy trucks in China in November remains very strong, confirming that this year's demand is more concentrated in the second half. They are optimistic about the significant growth in sales of liquefied natural gas (LNG) trucks and view Weichai's leading position in the LNG heavy truck engine market favorably, believing it has the potential for a revaluation.