Soochow Securities·2024-11-02 07:37Investment Rating - The investment rating for Weichai Power is "Buy" (maintained) [1] Core Views - The company's Q3 2024 performance met market expectations, with total revenue of 49.46 billion yuan and a net profit attributable to shareholders of 2.5 billion yuan, showing a decrease compared to previous periods [2] - The heavy truck industry is experiencing a downturn, but the subsidiary Shaanxi Heavy Truck performed better than the industry average, with wholesale sales of 33,000 units in Q3 2024 [2] - The subsidiary Kion showed improved profitability in Q3 2024, with a revenue of 2.7 billion euros and a net profit of 0.72 billion euros [3] - The company's gross margin improved to 22.12% in Q3 2024, driven by product structure optimization and cost reduction efforts [4] - Looking ahead, there is an expectation for a rebound in domestic demand due to macroeconomic policies, despite the current downturn in the heavy truck industry [5] Financial Forecasts and Valuation - The revenue forecast for 2024 is adjusted to 111 billion yuan, with corresponding EPS of 1.27 yuan and a P/E ratio of 12.81 times [5] - The company maintains a strong market position with low current valuations, justifying the "Buy" rating [5]