Movement Alert|Weichai Power Rises 4.23% in Regular Trading, Citi Raises Target Price to HK$50 While Morgan Stanley Maintains Overweight Rating

Market Focus06-25

On June 25, Weichai Power rose 4.23% in regular trading, trading at HK$38.82/share, with turnover of HK$98.93 million, recovering losses from the prior two trading sessions.

On the news front, Citi recently reaffirmed its Buy rating on the company and significantly raised its target price from HK$42 to HK$50. The bank lifted its net profit forecasts by up to 56%, raising estimates for fiscal years 2026-2028 to RMB 16.5 billion, RMB 20.9 billion, and RMB 30.6 billion respectively, while increasing revenue forecasts by 1-4%. Citi expects the companys AIDC (Artificial Intelligence Data Center) engine business to begin contributing revenue from the end of Q3, maintaining full-year equipment delivery forecasts of 4,000 units. Concurrently, Morgan Stanley maintained its Overweight rating with a target price of HK$47, noting that the recent pullback offers an attractive entry point as AIDC power business transitions from thematic expectations into order and earnings delivery phase.

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