HK Stock Market Move | Weichai Power (02338) fell more than 4%, and its LNG heavy truck business may face short-term pressure. Institutions point out that the market is currently reassessing the company.

Weichai Power (02338) fell more than 4%, dropping 3.37% by the time of publication to 40.18 Hong Kong dollars, with a trading volume of 427 million Hong Kong dollars. On the news front, a report from Daiwa stated that the latest forecast indicates that Weichai Power's net profit is expected to grow by 14% to 24% annually from 2027 to 2028, up from the previous range of 6% to 14%, mainly driven by strong demand for AI data centers. Daiwa noted that despite remaining positive on Weichai Power due to the long-term growth potential from AI data center demand, the LNG heavy truck business may face pressure in the short term based on valuation and the potential end of the Middle East conflict. JP Morgan released a report stating that Weichai Power is benefiting from investor focus shifting from traditional heavy truck engines to electric transformation, as well as strong quarterly performance and raised guidance from global peers. The global AI data center power market is extremely tight in supply, with customers prioritizing delivery speed and capability. JP Morgan believes that the market is reevaluating Weichai Power and will retain it as a top pick in the industry.