Citi: Weichai Power (02338) offers an attractive short-term risk-reward; maintain "Buy" rating.

Citi issued a research report stating that, according to tracking data on Chinese automakers, Weichai Power's (02338) share price discount relative to the bank's AIDC/SOFC/AI weighted index has widened to a record 35%, matching the widest level seen in June and further widening from 28% a week earlier, reflecting its relatively attractive short-term risk-reward. The bank views the potential catalyst as the commencement of overseas AIDC gas engine shipments starting this month. The bank maintains its "Buy" rating on Weichai Power with a target price of HK$50, and also assigns a "Buy" rating to Sinotruk Jinan Truck (03808) with a target price of HK$55. In addition, Citi gives "Buy" ratings to Caterpillar (CAT.US) and Cummins (CMI.US), with target prices of US$1,100 and US$790, respectively.