HK Stock Market Move | Weichai Power (02338) rose more than 5%. Citigroup raised the profit margin expectation for the company's data center engine.

Weichai Power (02338) rose by more than 5%, as of the time of writing, it has increased by 5.31% to 28.18 Hong Kong dollars, with a trading volume of 151 million Hong Kong dollars. Citigroup released a research report stating that based on dealer surveys and industry validation (including feedback from Sinotruk Jinan Truck), the bank maintains a positive outlook on the stable growth in demand for Chinese heavy-duty trucks (HDT) by 2026. Due to strong demand for solid oxide fuel cells (SOFC) and active/passive energy supply for artificial intelligence data centers (AIDC), Citigroup believes that Weichai Power may strategically transform by shifting more resources from the mechanical field to the energy supply business to support long-term growth. The bank further pointed out that the company's large engines, data centers, and energy supply businesses have become core growth points. Specifically, the bank has raised its sales volume forecast for large engines for 2025-2027 to 13,500 units / 16,875 units / 20,250 units (with data center engine sales volume of 1,350 units / 2,835 units / 5,103 units), and has raised the gross profit margin forecast for data center engines to an average of 36.5% and for non-data center large engines to 32%.