HK Stock Market Move | Weichai Power (02338) rises more than 5%, Morgan Stanley expects the first batch of gas turbines to be delivered in small quantities or ahead of schedule, recent price pullback creates a buying opportunity.

Weichai Power (02338) rose more than 5%, reaching a 4.97% increase to HK$39.74 at the time of writing, with a trading volume of HK$72.9557 million. According to news reports, a research report from Morgan Stanley pointed out that Weichai Power's main power source (gas turbines) is progressing faster than expected, with the first product expected to be released by the end of June 2026. Customer verification is ahead of schedule, and small-batch deliveries are expected to be brought forward from the original fourth quarter to the third quarter of 2026. The bank predicts that at least 200 units will be shipped in 2026, with a sharp increase to 1000 units in 2027. The company's pricing strategy is 5%-10% lower than mainstream competitors to gain market share. In terms of capacity expansion, the company's AIDC engine capacity is expected to reach 5000 units in 2026 and increase to 8000-10000 units in 2027 (including overseas capacity) to meet the continuous strong market demand. Morgan Stanley believes that Weichai Power's recent stock price correction creates a buying opportunity, with the core logic being the explosive growth of AIDC backup power and the main gas engine, as well as the potential for solid oxide fuel cells (SOFC) to perform better than expected.