Minsheng Securities·2024-07-15 03:30Investment Rating - The report maintains a "Recommended" rating for Weichai Power [2][3]. Core Views - The company is expected to achieve a net profit attributable to shareholders of 5.46 to 6.24 billion yuan for the first half of 2024, representing a year-on-year increase of 40.0% to 60.0% [2]. - The second quarter of 2024 is projected to see a net profit of 3.25 billion yuan, a year-on-year increase of 59.1% and a quarter-on-quarter increase of 25.0% [2]. - The company benefits from cost reduction and efficiency improvements, as well as an optimized business and product structure, contributing to its strong performance despite a decline in heavy truck sales [2]. - The heavy truck market is expected to enter a new upward cycle due to favorable policies, stable overseas orders, and a recovery in fixed asset investment [2]. - The natural gas heavy truck segment remains highly prosperous, with the company’s engine sales and prices both increasing [2]. Financial Summary - Revenue projections for 2024 to 2026 are 235.93 billion, 255.89 billion, and 274.48 billion yuan, respectively, with growth rates of 22.2%, 10.3%, and 8.5% [3][6]. - Net profit attributable to shareholders is forecasted to be 11.44 billion, 13.93 billion, and 15.92 billion yuan for the same period, with growth rates of 26.9%, 21.8%, and 14.2% [3][6]. - Earnings per share (EPS) are expected to be 1.31, 1.60, and 1.82 yuan for 2024, 2025, and 2026, respectively [3][6]. - The price-to-earnings (PE) ratios are projected to be 11, 9, and 8 for the years 2024, 2025, and 2026, respectively [3][6].