Weichai Power (02338) rose nearly 4%, with gains of 2.73% at the time of reporting, trading at HKD 40.7 and a turnover of HKD 403 million. According to the latest Goldman Sachs research report, global backup power leader Generac (GNRC) reported better-than-expected first-quarter 2026 results, with its key partner Weichai Power (via the Baudouin brand large-bore diesel engines) benefiting positively. Generac's data center order backlog increased from USD 400 million at the end of 2025 to approximately USD 700 million by the end of the first quarter of 2026. It is expected that "significant volume" orders will be released in the coming quarters as two major hyperscale data center customers complete formal supplier qualification (AVL). Goldman Sachs further noted that regarding capacity and guidance, Generac's management stated that in addition to the previously guided USD 1 billion capacity, it is actively exploring further expansion possibilities, with a potential scale of USD 2-3 billion. The possibility of "co-located production" in the United States to ensure supply was also discussed. Goldman Sachs believes that Weichai has transitioned from a traditional heavy-duty truck engine leader to the AI data center power generation business. This business currently accounts for about 10% of estimated 2025 net profit and is expected to grow 3.3 times by 2030, contributing over one-third of profits and becoming a core growth driver for the future.
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