Huachuang Securities·2024-08-23 10:12Investment Rating - The report maintains a "Strong Buy" rating for Weichai Power, with a target price of 20.6 CNY, corresponding to a PE ratio of 15.1 times for 2024 [2][9]. Core Views - Weichai Power's 2Q performance exceeded expectations, with a revenue of 561 billion CNY, a year-on-year increase of 6%, and a net profit of 33 billion CNY, up 62% year-on-year [2][3]. - The company benefits from a favorable market environment in the heavy truck industry, with a clear upward trend since the 2022 cycle bottom, particularly in the natural gas heavy truck segment [3]. - The diversified business development, including smart logistics and large-bore engines, is expected to provide alpha returns beyond the heavy truck industry's growth cycle [3]. Financial Summary - For 2024, total revenue is projected to be 231.62 billion CNY, with a year-on-year growth rate of 8.3% [9]. - The net profit for 2024 is estimated at 11.91 billion CNY, reflecting a significant year-on-year growth of 32.1% [9]. - The company reported a dividend payout ratio of 55% for the first half of 2024, with a corresponding annualized dividend yield of 5.7% [2][3]. - The gross profit margin for the first half of 2024 was 29.2%, an increase of 3.1 percentage points year-on-year [2].