Ge Long Hui·2025-11-06 05:45Core Viewpoint - The report from Daiwa indicates that the demand for heavy trucks in China is expected to remain sustainable due to the replacement cycle and potentially extended vehicle replacement subsidy policies, with strong demand also observed in emerging markets [1] Group 1: Market Forecast - The forecast predicts that the demand for liquefied natural gas (LNG) heavy trucks will increase, with total heavy truck sales in China expected to grow by 19% year-on-year to 1.07 million units this year [1] - Total sales are projected to rise to 1.12 million units next year, reflecting a year-on-year growth of 4% [1] Group 2: Company Ratings - Daiwa has identified Weichai Power as the preferred stock in the industry, upgrading its target price from HKD 18 to HKD 20.5, citing expectations of benefiting from the recovery of LNG truck demand and growth in high-power engine demand next year [1] - China National Heavy Duty Truck Group has been given an "outperform" rating, with its target price raised from HKD 21.7 to HKD 29.4 [1]