Goldman Sachs: Raise Weichai Power's target price for AH shares, AIDC's power generation business has strong prospects.

Goldman Sachs released a report, raising Weichai Power's earnings per share forecast for 2026 to 2030 by 1% to 4%, mainly due to strong prospects for AI data center power generation business. The bank pointed out that the company's engine business portfolio transformation will accelerate, and it is expected that by 2028, AIDC power generation will account for one-third of the company's net profit, exceeding the contribution of HDT engine business; by 2030, the proportion will increase to 40%, reaching around 11 billion yuan, equivalent to the company's current net profit scale. The bank reiterated its "buy" rating for Weichai Power, raised its target valuation, and raised Weichai Power's H shares and A shares target prices to HK$41 and RMB 38, respectively, equivalent to a 22 times composite PE ratio for this year.