Citi Upgrades Weichai Power to "Buy," Raises Target Price Sharply to HK$34

In its latest research report, Citigroup upgraded Weichai Power’s rating from “Neutral” to “Buy” and significantly raised its target price from HK$21.30 to HK$34. The report noted that strong demand from AI data centers for solid oxide fuel cells and energy solutions is expected to drive Weichai to gradually shift resources from traditional machinery businesses toward its energy segment, supporting long-term growth. Citigroup also raised its sales forecasts for large engines and data center engines for 2025–2027 and increased its net profit estimates by 1% to 4%. Additionally, the bank views last year’s impairment charge related to Kion as a one-off impact and expects future cost-cutting measures to yield positive results. Coupled with steady projected growth in China’s heavy-duty truck demand, the overall outlook remains favorable.