Goldman Sachs: Significantly raise Weichai Power's target price to 37 Hong Kong dollars, pointing out that it is a key beneficiary in the Asian AIDC power generation sector.

Goldman Sachs has released a research report, leading the market in adjusting Weichai Power's long-term profit forecast to reflect the enhanced prospects of its power generation business as Weichai continues to expand its product and technology portfolio. The power generation business of AIDC currently accounts for about 10% of Weichai's forecasted total net profit for 2025, and is expected to grow 3.3 times by 2030, with its profit contribution increasing by more than double to reach approximately one-third of the total profit, surpassing the contribution of domestic heavy-duty truck engines. The bank has raised its earnings per share forecast for Weichai for 2025 to 2027 by 1% to 7%, and by 9% to 21% after 2027. It believes that Weichai's shift from being driven by heavy-duty trucks to being driven by power generation justifies a revaluation of the company. Goldman Sachs reiterated its "buy" rating on Weichai, significantly raising the target price from 21 Hong Kong dollars to 37 Hong Kong dollars, believing that it is a key beneficiary in the Asian AIDC power generation sector.