HK Stock Market Move | Weichai Power (02338) rose nearly 3% at the end of the day. Industry demand is focused on the second half of the year. JP Morgan is bullish on the company's leading position in the LNG heavy truck engine market.

Weichai Power (02338) rose nearly 3% at the close, rising 1.98% as of the time of publication, to 20.04 Hong Kong dollars, with a turnover of 2.81 billion Hong Kong dollars. JP Morgan released a research report stating that Weichai Power is one of the preferred stocks in the industrial sector for 2026. The bank pointed out that founder and former chairman Tan Xuguang announced his retirement in August 2024, causing investors to worry about the strategic decoupling between Sinotruk Jinan Truck and Weichai. However, with the former senior executive Wang Zhijian taking over as chairman of Sinotruk Jinan Truck and the parent company of Weichai, Shandong Heavy Industry Group, at the end of last month, the expected strategic continuity risks between the leadership and the company are expected to be alleviated. In addition, JP Morgan pointed out that demand for heavy trucks in China in November remains very strong, confirming that demand this year is more concentrated in the second half of the year. They anticipate a significant growth in sales of liquefied natural gas (LNG) trucks and are optimistic about Weichai's leading position in the LNG heavy truck engine market, believing in the potential for a revaluation. It is understood that Weichai Power's market share in the LNG heavy truck engine market has long been over 60%, and from January to April 2025, it broke through a core market share of over 50%. In the market for high-horsepower gas engines of 500 horsepower and above, the market share is 42%, far exceeding competitors such as Cummins, Jiefang Power, and Yuchai Group. Among the top three heavy truck brands in China's natural gas sales ranking, Weichai Power's supporting share is as high as 70%-90%, making it a core power supply provider for leading heavy truck companies.