Citigroup: Reiterates "buy" rating on Weichai Power (02338), target price raised to 50 Hong Kong dollars.

Citibank released a research report stating that it has reiterated its "buy" rating on Weichai Power (02338), with a target price raised from 42 Hong Kong dollars to 50 Hong Kong dollars. The bank has increased the company's revenue forecasts for the years 2026 to 2028 by 1% to 4%, to 261 billion, 311 billion, and 340 billion Chinese yuan respectively, and has also raised its net profit forecasts by 4%, 13%, and 56% to 16.5 billion, 20.9 billion, and 30.6 billion Chinese yuan respectively. The report stated that there is potential growth in orders from overseas customers for Weichai Power, and it is expected that the company's AIDC (Artificial Intelligence Data Center) engine business will start contributing revenue from the end of the third quarter of this year, further enhancing the company's profit growth visibility. The bank maintains its forecast of AIDC equipment deliveries for the fiscal years 2026 to 2028 as 4,000, 6,800, and 10,200 units.