Tai Ping Yang·2024-08-29 01:00Investment Rating - The report maintains a "Buy" rating for Weichai Power (000338) with a target price based on the last closing price of 13.34 [1][3] Core Views - Weichai Power continues to enhance its market share, particularly in the natural gas heavy truck segment, which has seen significant growth [1] - The company reported a revenue of 1124.90 billion yuan for the first half of 2024, a year-on-year increase of 5.99%, and a net profit of 59.03 billion yuan, up 51.41% year-on-year [3] - The profitability metrics reached their highest levels in five years, with a gross margin of 21.75% and a net margin of 6.56% for the first half of 2024 [3] Financial Performance Summary - Revenue and Profitability: - H1 2024 revenue: 1124.90 billion yuan, +5.99% YoY - H1 2024 net profit: 59.03 billion yuan, +51.41% YoY - Q2 2024 revenue: 561.10 billion yuan, +6.47% YoY - Q2 2024 net profit: 33.04 billion yuan, +61.71% YoY [3] - Margins: - H1 2024 gross margin: 21.75%, +2.3 percentage points YoY - H1 2024 net margin: 6.56%, +2.1 percentage points YoY [3] - Sales Performance: - LNG heavy truck sales: 108,800 units, +104% YoY - Weichai's natural gas heavy truck sales: 17,000 units, +1344% YoY - Market share for heavy truck engines: 40.5%, +3.9 percentage points YoY [3] Future Outlook - Revenue Projections: - Expected revenue for 2024: 2275 billion yuan, +6.33% YoY - Expected revenue for 2025: 2491 billion yuan, +9.48% YoY [6] - Net Profit Projections: - Expected net profit for 2024: 119 billion yuan, +32% YoY - Expected net profit for 2025: 135 billion yuan, +13% YoY [6] - Valuation Metrics: - Projected PE ratios for 2024 and 2025: 9.5 and 8.4 respectively [6]