Weichai Power(000338) 经济观察网·2025-03-28 05:01Core Viewpoint - Weichai Power reported a dual growth in revenue and net profit for the year 2024, indicating a positive outlook for the commercial vehicle and construction machinery markets in China for 2025 [1][2]. Financial Performance - Weichai Power achieved an operating revenue of 215.7 billion yuan, a year-on-year increase of 0.8% - The net profit attributable to shareholders reached 11.4 billion yuan, reflecting a significant year-on-year growth of 26.5% - The net profit excluding non-recurring items was 10.5 billion yuan, up 30.3% year-on-year [2]. Business Segments - The core business segment, including powertrains, complete vehicles, and key components, generated 89.8 billion yuan in revenue, accounting for 42% of total revenue, with a gross margin of 19.5%, an increase of 1.6 percentage points from the previous year [2]. - The company sold 734,000 engines, remaining stable compared to the previous year, while heavy truck sales reached 118,000 units, outpacing industry growth [2]. - Weichai Power has established a diversified energy product matrix, including traditional, clean, and new energy power products [2]. Clean Energy and New Energy Initiatives - Weichai Power launched a new generation of gas engines, achieving a market share of 59.6% in the natural gas heavy truck engine segment in 2024 [3]. - The company introduced a full range of commercial vehicle and construction machinery power batteries, with a cycle life improvement of over 60% and a weight reduction of 5% compared to competitors, expected to drive future growth [3]. International Operations - Weichai Power's subsidiary, KION Group in Germany, achieved a record revenue of 11.5 billion euros and a net profit of 370 million euros, up 17.5% year-on-year [3]. - KION Group focuses on smart innovation and has established an automation solutions excellence center to enhance warehouse management efficiency [4]. Market Outlook - The heavy truck and construction machinery markets are expected to recover in 2025, driven by government policies promoting the replacement of old vehicles and expanding subsidy coverage [4][5]. - Analysts predict a structural growth opportunity for the heavy truck industry, with potential sales returning to over one million units [5][6]. - Weichai Power anticipates benefits from a new round of equipment updates and policy incentives, alongside growth in overseas markets [6]. Strategic Business Transformation - Weichai Power plans to focus on five strategic business transformations: 1. Developing new energy businesses and integrating resources 2. Expanding the large-bore engine business for high-end markets 3. Strengthening overseas market presence through local manufacturing and supply chain development 4. Enhancing after-market services for a comprehensive product lifecycle solution 5. Accelerating digital transformation and integrating digital technologies into high-end products [7]. - The recovery in the heavy truck and construction machinery markets is expected to benefit Weichai Power as an upstream leader [7].