Citi: Weichai Power (02338) Valuation Gap with AIDC Index Widens to Widest This Year; Q3 Net Profit Estimated at Around RMB 4.1 Billion

Stock News10-14 14:06

Citi has issued a research report stating that shares of Weichai Power Co.,Ltd. (02338) fell 10% over the past week, underperforming the AIDC/SOFC/AI weighted index, reflecting that the valuation gap between downstream AIDC equipment manufacturers and upstream manufacturers may widen further. The bank expects the company's third-quarter revenue to reach RMB 56.6 billion.

The bank estimates that Weichai Power Co.,Ltd. shares have on average traded 14.6% below the weighted index so far this year, and as of yesterday (the 13th), the stock was 39% below the index, marking the largest gap this year.

Regarding the third-quarter outlook, Citi noted that Weichai Power Co.,Ltd. has not yet shipped AIDC gas engines externally, and estimates its third-quarter passive AIDC diesel engine shipments at approximately 1,300 units, compared with 1,400 units in the first half.

The bank expects Weichai Power Co.,Ltd.'s third-quarter net profit to be approximately RMB 4.0 billion to RMB 4.1 billion.

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