Investment Rating - The report maintains a "BUY" rating for Weichai Power with a target price of HK$22.00, indicating a potential upside of 33.3% from the current price of HK$16.50 [4]. Core Insights - Weichai Power's net profit for 1Q24 increased by 40% year-on-year to RMB2.6 billion, driven by margin expansion in both its core business and KION Group [2]. - The revenue growth of 6% year-on-year to RMB56.4 billion in 1Q24 was below expectations, but the earnings growth was in line with forecasts [2]. - The company is positioned as a sector top pick due to its significant market share in natural gas engines and the expected structural growth from high-speed large-bore engines [2]. Financial Performance Summary - 1Q24 revenue was RMB56.4 billion, with a gross margin expansion of 3.4 percentage points year-on-year to 22.1% [2][6]. - Pre-tax profit surged by 58% year-on-year to RMB4.2 billion, with the core business and KION reporting growth rates of 45% and 93% respectively [2]. - Operating cash flow improved significantly to RMB1.6 billion in 1Q24, compared to an outflow of RMB471 million in 1Q23 [2]. KION Group Performance - KION, in which Weichai holds a 46.5% stake, reported an adjusted EBIT of EUR227 million in 1Q24, a 46% increase year-on-year, attributed to easing cost pressures [2][7]. - KION has set a full-year adjusted EBIT target of EUR790-940 million, reflecting a potential growth of 0-19% year-on-year [2][7]. Market Position and Sales - Weichai's multi-cylinder engine sales grew by 13% year-on-year to 206,000 units in 1Q24, outperforming the industry average, which saw a decline of approximately 1% [2][8]. - The company holds a market share of around 18% in the multi-cylinder engine segment, an increase of 2.3 percentage points year-on-year [2][8]. Earnings Forecast - Revenue projections for Weichai Power are as follows: FY24E at RMB236.3 billion, FY25E at RMB250.1 billion, and FY26E at RMB260.0 billion, with respective year-on-year growth rates of 10.4%, 5.8%, and 4.0% [3][13]. - Adjusted net profit estimates are RMB12.1 billion for FY24E, RMB13.1 billion for FY25E, and RMB13.8 billion for FY26E, reflecting growth rates of 34.4%, 7.7%, and 5.5% respectively [3][13].

Investment Rating - The report maintains a "Buy" rating for Weichai Power with a target price of HKD 22.00, indicating a potential upside of 33.3% from the current price of HKD 16.50 [2][3]. Core Insights - Weichai Power's Q1 2024 net profit increased by 40% year-on-year to RMB 2.6 billion, driven by core business growth and margin expansion, despite a 6% revenue growth that was below expectations [2]. - The company is expected to benefit from a significant price gap between natural gas and diesel, which is likely to drive demand for natural gas engines, with market share projected to exceed 60% [2]. - The sales volume of Weichai's engines outperformed the industry average, with a 13% year-on-year increase in multi-cylinder sales, reaching 206,000 units, while the industry average saw a decline of approximately 1% [2]. Financial Summary - Revenue for FY 2023 is projected at RMB 213.96 billion, with a year-on-year growth of 22.2%. For FY 2024, revenue is expected to reach RMB 236.29 billion, reflecting a growth of 10.4% [3][13]. - Adjusted net profit for FY 2024 is estimated at RMB 12.12 billion, with an EPS of RMB 1.39, representing a year-on-year growth of 34.4% [3][13]. - The company’s gross margin improved by 3.4 percentage points to 22.1% in Q1 2024, while the pre-tax profit surged by 58% to RMB 4.2 billion [2][6]. KION Group Performance - KION Group, in which Weichai holds a 46.5% stake, reported a 46% year-on-year increase in adjusted EBIT to EUR 22.7 million for Q1 2024, benefiting from alleviated cost pressures [2][8]. - KION has guided for an adjusted EBIT target for the full year of EUR 790 to 940 million, reflecting a year-on-year growth of 0% to 19% [2][8]. Market Position and Growth Drivers - The demand for Weichai's natural gas engines is expected to remain strong due to the ongoing construction of data centers, which will support the growth of high-speed large-caliber engines [2]. - The company’s market share in the multi-cylinder engine segment has increased by 2.3 percentage points to approximately 18% [2]. Valuation Metrics - The report highlights a price-to-earnings ratio (P/E) of 14.8 for FY 2023, projected to decrease to 11.0 for FY 2024, indicating a favorable valuation trend [3][13]. - The price-to-book ratio (P/B) is expected to decline from 1.7 in FY 2023 to 1.5 in FY 2024, suggesting an attractive investment opportunity [3][13].

Financial Performance - Total revenue for Q1 2024 reached CNY 56.38 billion, an increase of 5.51% compared to CNY 53.43 billion in the same period last year[3] - Net profit attributable to shareholders was CNY 2.60 billion, representing a 40.07% increase from CNY 1.86 billion year-on-year[3] - Basic earnings per share rose to CNY 0.30, up 40.08% from CNY 0.21 in the same quarter last year[3] - Operating profit for the quarter was CNY 411.10 million, reflecting a 59.72% increase from CNY 257.39 million in the previous year[6] - The company reported a total comprehensive income of RMB 3.93 billion, compared to RMB 2.86 billion in Q1 2023, marking a 37.3% increase[13] - The company achieved a net profit margin of approximately 5.9%, compared to 4.2% in Q1 2023[13] Cash Flow - Net cash flow from operating activities improved significantly to CNY 1.61 billion, a 441.76% increase from a negative CNY 471.62 million in the previous year[3] - The cash inflow from operating activities for Q1 2024 was RMB 50,532,315,739.26, an increase of 20.5% compared to RMB 41,965,267,489.26 in the same period last year[15] - The net cash flow from operating activities was RMB 1,611,808,374.28, a significant recovery from a negative RMB 471,621,705.85 in Q1 2023[15] - The cash inflow from investment activities totaled RMB 7,720,541,439.98, down 23.5% from RMB 10,085,158,929.72 in the previous year[15] - The cash outflow from financing activities was RMB 3,087,583,738.49, an increase of 15.3% compared to RMB 2,677,633,444.60 in the same period last year[16] - The net cash flow from financing activities was negative at RMB -2,511,919,069.60, worsening from RMB -666,404,399.07 in Q1 2023[16] Assets and Liabilities - Total assets at the end of Q1 2024 were CNY 338.75 billion, a 1.35% increase from CNY 334.25 billion at the end of the previous year[3] - Total liabilities reached CNY 222.07 billion, slightly up from CNY 221.56 billion, indicating a marginal increase of 0.23%[11] - Current assets increased to CNY 202.79 billion from CNY 197.93 billion, a growth of approximately 4.4%[10] - The company's cash and cash equivalents decreased to CNY 88.03 billion from CNY 92.86 billion, a decline of about 5.9%[10] - The total equity attributable to shareholders rose to CNY 82.83 billion from CNY 79.34 billion, an increase of approximately 4.8%[11] Shareholder Information - The total number of common shareholders at the end of the reporting period is 240,057[7] - Weichai Holding Group Co., Ltd. holds 22.22% of shares, amounting to 1,938,891,045 shares[7] - Hong Kong Central Clearing Limited holds 16.30% of shares, totaling 1,422,550,620 shares, with 1,345,905,600 shares subject to trading restrictions[7] - Shandong Enterprise Management Co., Ltd. holds 3.40% of shares, equating to 296,625,408 shares, all of which are subject to trading restrictions[7] - The top ten shareholders collectively hold significant stakes, with the largest shareholder holding over 22%[8] Expenses - Total operating costs for the quarter were RMB 52.22 billion, an increase of 21.5% from RMB 43.91 billion in Q1 2023[12] - Research and development expenses rose to RMB 2.09 billion, a 14.1% increase from RMB 1.83 billion in the previous year[12] - Tax expenses for the quarter amounted to RMB 832 million, compared to RMB 405 million in the previous year, reflecting a significant increase[13] - The cash paid for taxes was RMB 1,028,521,281.35, an increase from RMB 853,007,872.06 in the same period last year, indicating a growth of 20.6%[15] Other Income - Other income surged by 403.26% to CNY 26.29 million, primarily due to increased government subsidies and VAT reductions[6] - The company's other comprehensive income rose to CNY 2.01 billion from CNY 1.17 billion, an increase of approximately 71.1%[11] - Other comprehensive income after tax was RMB 585 million, slightly down from RMB 616 million in the same period last year[13]

Financial Performance - Weichai Power reported a total revenue of RMB 100.5 billion for the fiscal year 2023, representing a year-on-year increase of 12%[6] - The company's net profit attributable to shareholders reached RMB 8.2 billion, up 15% compared to the previous year[6] - In 2023, the company's revenue increased by 22.2% year-on-year to approximately RMB 213,958 million[19] - Net profit attributable to shareholders rose by approximately 83.8% year-on-year to around RMB 9,014 million[19] - Basic earnings per share increased by approximately 84.5% year-on-year to RMB 1.04[19] - Future guidance estimates revenue growth of 10-15% for 2024, driven by increased demand in the construction machinery sector[6] - The company expects sales revenue in 2024 to range from approximately RMB 224.7 billion to RMB 235.4 billion, indicating an overall growth of approximately 5% to 10% compared to 2023[65] Sales and Market Expansion - User data indicates that the number of engine units sold increased by 20% to 300,000 units in 2023[6] - The company sold 736,000 units of engines, a year-on-year increase of 28%[21] - The company sold 838,000 units of gearboxes, representing a year-on-year increase of 42%[21] - The company sold 743,000 units of axles, reflecting a year-on-year increase of 39%[21] - The export volume of engines reached 66,000 units, a year-on-year increase of 21%[21] - Weichai Power plans to expand its market presence in Southeast Asia, targeting a 25% market share by 2025[6] - The heavy-duty truck industry experienced a sales volume increase of 36% year-on-year, reaching 910,000 units[17] - The total sales volume of heavy-duty trucks reached 116,000 units, with an export volume of 52,000 units, representing a year-on-year growth of 51%[54] Research and Development - The company has invested RMB 2 billion in R&D for new energy technologies, aiming to launch two new products in 2024[6] - The company has established a comprehensive R&D system to enhance product development capabilities[21] - The company completed the development of electric-powered assembly products for heavy-duty trucks, light-duty trucks, and passenger vehicles, with motor power ranging from 50-430 kW[30] - The company has achieved a product lifespan of 30,000 hours for its fuel cell products, leading in core technology and industrialization in the hydrogen fuel cell sector[31] - The company will increase R&D investment to accelerate breakthroughs in key technologies and improve product reliability, particularly in batteries and fuel cells[37] Operational Efficiency - Weichai Power's gross margin improved to 28%, an increase of 2 percentage points from the previous year[6] - The company has successfully reduced operational costs by 5% through efficiency improvements[9] - The Group's gross operating margin increased to 21.1%, up 3.3 percentage points year-on-year, driven by higher domestic sales revenue and improved product profitability[69] Cash Flow and Financial Position - Weichai Power's cash flow from operating activities was RMB 12 billion, reflecting a 20% increase year-on-year[6] - Net cash inflows from operating activities amounted to approximately RMB 27,471 million, a significant turnaround from net outflows in the previous year[85] - As of December 31, 2023, the Group's net cash position was RMB 36,368 million, with a gearing ratio of approximately 23.8%[86] - The Group's total assets were approximately RMB 334,247 million, with current assets comprising approximately RMB 197,925 million as of December 31, 2023[89] Strategic Partnerships and Acquisitions - The company has completed the acquisition of a local competitor, enhancing its production capacity by 30%[6] - The company has established a strategic partnership with a leading technology firm to develop autonomous vehicle solutions[6] - The company is considering strategic acquisitions to enhance its market position, with potential targets identified[7] Leadership and Management - Mr. Tan Xuguang, the Chairman, has over 40 years of experience in internal combustion engine and power system technology innovation and engineering management[145] - The company has a strong leadership team with members holding advanced degrees and significant industry experience, including Mr. Ma Changhai, who was appointed as an Executive Director on June 28, 2023[147] - The company emphasizes the importance of engineering talent, as evidenced by the recognition of its leaders as Industrial Leading Talents of Taishan[145] - The leadership team includes professionals with diverse backgrounds, such as Mr. Yuan Hongming, who has extensive experience in the automotive industry and holds a bachelor's degree from Tsinghua University[153] Dividend and Shareholder Returns - The company plans to distribute a cash dividend of RMB2.93 per 10 shares for a total of 8,717,561,296 shares eligible for profit distribution, amounting to approximately RMB 2.55 billion[32] - The proposed spin-off has been temporarily terminated, with no substantial impact on the company's operations or financial position[120][123] Industry Trends and Outlook - The commercial vehicle industry is expected to maintain a growth trend in 2024, supported by favorable national policies and a rebound in China's economy[33] - The company anticipates that the penetration of new energy and advancements in intelligentization and electrification will create new opportunities for its "Three New" businesses[33]

Investment Rating - The report maintains a "Buy" rating for Weichai Power (2338 HK) with a target price of HKD 18.60, indicating a potential upside of 26.7% from the current price of HKD 14.68 [1][6]. Core Insights - Weichai Power's net profit for 2023 increased by 84% year-on-year to RMB 9 billion, aligning with the previously announced profit range of RMB 8.58 billion to RMB 9.32 billion [1]. - The company's revenue grew by 22.2% to RMB 213.96 billion, with an improved gross margin of 21.1%, up from 17.8% in 2022 [1][5]. - The fourth quarter of 2023 saw a net profit increase of 58% year-on-year to RMB 2.5 billion, driven by a 20% revenue growth to RMB 53.6 billion and a gross margin increase of 3.3 percentage points to 23.7% [1]. - The dividend payout ratio has risen to 50% for 2023, up from 40% in 2022, with a final dividend of RMB 0.293 per share [1]. Financial Overview - Revenue and Profit Forecasts: - 2022: Revenue of RMB 175.16 billion, Net Profit of RMB 4.91 billion - 2023: Revenue of RMB 213.96 billion, Net Profit of RMB 9.01 billion - 2024E: Revenue of RMB 235.46 billion, Net Profit of RMB 11.84 billion - 2025E: Revenue of RMB 252.95 billion, Net Profit of RMB 13.71 billion - 2026E: Revenue of RMB 269.54 billion, Net Profit of RMB 14.85 billion [4][7]. - Earnings Per Share (EPS) is projected to grow from RMB 1.05 in 2023 to RMB 1.38 in 2024E, reflecting a year-on-year growth of 31.3% [4][7]. - The price-to-earnings (P/E) ratio is expected to decrease from 12.9 in 2023 to 9.8 in 2024E, indicating improved valuation metrics [4][7]. Business Segment Performance - The engine business experienced a robust recovery with a revenue increase of 55% year-on-year to RMB 60.8 billion, and segment profit surged 1.7 times to RMB 7.7 billion [1]. - Forklift production and warehouse technology services saw a tenfold profit increase to RMB 4.9 billion, benefiting from a low base effect [1]. - The demand for natural gas engines is expected to remain strong, with Weichai holding nearly 70% market share in this segment [1]. Market Position and Outlook - The report anticipates continued growth in heavy-duty truck engine sales, supported by a replacement cycle and strong demand for natural gas trucks [1]. - The overseas business, particularly through Kion Group, is expected to recover, contributing positively to revenue and profit growth [1].

M N 27 Mar 2024 CMB International Global Markets | Equity Research | Company Update Weichai Power (000338 CH) Key takeaways from post-results call Target Price RMB20.40 During the post-results call yesterday, Weichai expected the industry HDT (Previous TP RMB20.40) demand in 2024E will be ~900k units (-2% YoY). Of this, China demand is Up/Downside 23.6% expected to fall by 10% YoY to 600k units while exports are expected to grow Current Price RMB16.51 20% YoY to 300k units. Weichai expects the LNG price to ...

M N 26 Mar 2024 CMB International Global Markets | Equity Research | Company Update Weichai Power (000338 CH) 4Q23 net profit +58% YoY; Payout increased to 50%; Higher earnings forecast on margin Target Price RMB20.40 Weichai’s net profit in 2023 surged 84% YoY to RMB9bn, which is in line with (Previous TP RMB17.80) the profit range of RMB8.58-9.32bn announced in Jan. In 4Q23, net profit grew Up/Downside 25.4% 58% YoY to RMB2.5bn. It’s worth noting that Weichai has declared a final Current Price RMB16.27 di ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全 部或任何部份內容而產生或因依賴該等內容而引起的任何損失承擔任何責任。 濰 柴 動 力 股 份 有 限 公 司 WEICHAI POWER CO., LTD. （於中華人民共和國註冊成立的股份有限公司） （股份代號：2338） 截 至 二 零 二 三 年 十 二 月 三 十 一 日 止 年 度 的 末 期 業 績 公 佈 財務摘要 (cid:129) 營業收入約為人民幣213,958百萬元，上升約22.2%。 (cid:129) 歸屬於母公司股東的淨利潤約為人民幣9,014百萬元，上升約83.8%。 (cid:129) 每股基本盈利約為人民幣1.04元，上升約84.5%。 ...

此报告最后部分的分析师披露、商业关系披露和免责声明为报告的一部分，必须阅读。 下载本公司之研究报告，可从彭博信息：BOCM 或 https://research.bocomgroup.com 交银国际研究 首次覆盖 重卡 收盘价 目标价 潜在涨幅 2024年3月14日 港元14.70 港元18.60 +26.5% 潍柴动力 (2338 HK) 潍 柴 动 力 (2338 重卡结构性机遇的主要受益者，市占率和盈利有望双升，首予买入 HK)：重卡结构性  天然气重卡渗透率提升的主要受益者，首予买入评级。我们首次覆盖潍柴 成个长股评机级遇的主要受 H股（2338 HK）/A股（000338 CH），给予买入评级，目标价18.6港元/ 买入 人民币19.8元，基于12.1倍/14.1倍的市盈率，接近上一轮2016年上升周 益者，首次覆盖买 期前的估值水平。我们预测2024-2025年盈利会持续恢复。鉴于其在重卡 发动机，特别是天然气重卡发动机强大技术储备、市场份额，以及2023- 入 1年股价表现 25E的强劲复苏，我们认为股价仍然具备上升潜力。 2338 HK 恒生指数 50%  柴油和天然气价差令天然气重卡经 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部或任何部份內容而產生或因依賴該等內容而引起的任何損失承擔任何責任。 濰柴動力股份有限公司 WEICHAI POWER CO., LTD. （於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司） （股 份 代 號：2338） 海外監管公告 本公告乃根據香港聯合交易所有限公司（「聯交所」）證券上市規則第13.10B條 而 作 出。 茲載列濰柴動力股份有限公司（「本公司」）在深圳證券交易所網站刊登日期為 二 零 二 三 年 十 月 三 十 日 的 公 告，僅 供 參 閱。中 文 公 告 的 全 文 刊 登 於 聯 交 所 及 本 公 司 網 站。 承董事會命 董事長 譚旭光 中國山東濰坊 二零二三年十月三十日 於 本 公 告 刊 發 之 日，本 公 司 執 行 董 事 為 譚 旭 光 先 生、張 泉 先 生、馬 常 海 先 生、 王 德 成 先 生、孫 少 軍 先 生、袁 宏 明 先 生 及 馬 ...