Soochow Securities·2024-08-26 12:49Investment Rating - The report maintains a "Buy" rating for Weichai Power [1] Core Views - Weichai Power's Q2 performance exceeded expectations, with significant improvements in profitability [3] - The company's revenue for H1 2024 reached 112.49 billion yuan, a year-on-year increase of 6.0%, with net profits growing by 51.4% [3] - The report highlights the optimization of product structure and profit improvement from subsidiaries as key drivers for enhanced profitability [3] Financial Performance Summary - Total revenue (in million yuan) for 2022A, 2023A, 2024E, 2025E, and 2026E is projected at 175,158, 213,958, 236,259, 250,533, and 273,153 respectively, with year-on-year growth rates of -20.46%, 22.15%, 10.42%, 6.04%, and 9.03% [2] - Net profit attributable to shareholders (in million yuan) is forecasted to be 4,905, 9,014, 11,588, 13,371, and 15,696 for the same years, reflecting year-on-year growth rates of -48.33%, 83.77%, 28.56%, 15.39%, and 17.39% [2] - The report indicates an EPS of 0.56, 1.03, 1.33, 1.53, and 1.80 for the respective years, with corresponding P/E ratios of 28.95, 15.75, 12.25, 10.62, and 9.05 [2] Market Position and Outlook - The report notes a strong increase in sales of natural gas engines, with a year-on-year growth of 67.3% in Q2 [3] - The heavy truck segment is expected to benefit from high market share and profitability, particularly in natural gas heavy trucks [3] - The company is focusing on high-margin products like large-bore engines and expanding its overseas market presence [3] - Long-term strategies include developing WPDI, methanol engines, hydrogen internal combustion engines, and enhancing testing capabilities for electric drive components [3]