HSBC Research: WEICHAI POWER AI Data Center Biz Continues to Grow; Raises TP to HKD46

HSBC Research reported that WEICHAI POWER's AI data center business is growing, despite a lower-than-expected net profit in Q1 2026 due to foreign exchange losses. The broker maintained a Buy rating and raised the target price from HKD39 to HKD46. The stock has surged 92% YTD, driven by AIDC potential. Key customer Generac is nearing supplier approval with two clients, and WEICHAI sold 500 AIDC engines in Q1 2026, a 240% YoY increase. Earnings forecasts for 2027 and 2028 were raised by 7% and 8%, respectively, while the 2026 forecast was trimmed by 3% due to losses.