Guohai Securities: Maintains "buy" rating on Weichai Power, valuation system expected to undergo reconstruction.

Guohai Securities research report pointed out that Weichai Power's profit in Q4 2025 is under pressure, but the bright prospects of transformation remain unchanged. The company's revenue in 2025 was 231.81 billion yuan, yoy +7.5%, with a net profit attributable to the parent company of 10.93 billion yuan, yoy -4.15%. In Q4 2025, the revenue was 61.24 billion yuan, yoy +14.0%, with a net profit attributable to the parent company of 2.05 billion yuan, yoy -31.6%. In terms of income, the company's yoy +7.5% in 2025, mainly driven by stable growth in the income of the parent company and Kailai, as well as the income growth driven by Shaanxi Heavy Truck. In terms of profitability, the pressure on gross profit margin in Q4 2025 is the main reason for the yoy decline in net profit attributable to the parent company in Q4 2025. Looking at the year as a whole, the enhanced profitability of Shaanxi Heavy Truck is a highlight, and excluding one-time factors, Kailai's profitability is stable and increasing year-on-year. Based on the newly established power energy business sector, Weichai Power is transforming towards new energy, internationalization, and high-end, with bright prospects. With the upswing in data center power infrastructure and the recovery of the heavy truck industry cycle, the company is entering a new growth cycle, and the valuation system is expected to be restructured. The "hold" rating is maintained.