Daiwa: Weichai Power's global market share visibility improves, raising target price to 40 yuan

AASTOCKS
2026.03.02 06:03

Daiwa published a report stating that since the end of 2025, Weichai Power (02338.HK) has been the firm's preferred stock due to its extensive capabilities to meet AIDC power demands. The firm now sees increased visibility for its market share capture in the global power generation market and expects Weichai to be a key beneficiary of strong AIDC demand in the coming years, with further revaluation potential.

The firm stated that it has slightly raised its revenue forecasts for Weichai Power for 2026 to 2027 by 1%, and reiterated its "Buy" rating, raising the target price from HKD 24 to HKD 40, due to a higher target enterprise value multiple of 12 times for Weichai's engine business, and an unchanged target price-to-earnings ratio of 9 times for its automotive parts and agricultural equipment business

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