HK Stock Market Move | Weichai Power (02338) rose over 5% in early trading; its AIDC business is expected to drive mid-term performance growth and valuation improvement.

Weichai Power (02338) rose over 5% in early trading. As of press time, it was up 4.61% at HK$30.84, with a turnover of HK$73.0143 million. On the news front, in September this year, Generac announced a supply agreement with Amazon for backup generators for data centers, with initial deliveries of backup generators expected to total US$2.4 billion in 2027 and 2028. It is understood that Weichai Power has established a partnership with Generac, leveraging its channels and customer resources in the North American backup power and distributed energy markets to accelerate the deployment of gas generator sets in high-end scenarios such as data centers and power security. Sealand stated that Weichai Power is transitioning from a traditional powertrain supplier to a "high-end power + energy solutions provider," and its AIDC power business is expected to become a core variable for mid-term performance growth and valuation improvement. Amid the resonance of an upcycle in data center power infrastructure and a cyclical recovery in the heavy truck industry, the company has entered a new round of growth, and its valuation framework is expected to undergo reconstruction.