Weichai Power(SZ:000338) Ping An Securities·2025-04-11 07:44Investment Rating - The investment rating for Weichai Power is "Recommended" [1][10]. Core Views - Weichai Power achieved a revenue of 215.69 billion yuan in 2024, a year-on-year increase of 0.81%, and a net profit attributable to shareholders of 11.403 billion yuan, up 26.51% year-on-year [4]. - The company maintains a high market share of 38.7% in the heavy truck engine sector despite a 1% decline in the overall heavy truck industry sales [7]. - The company is focusing on five strategic business transformations, including enhancing its new energy business and expanding its high-end product offerings [8]. Summary by Sections Financial Performance - In 2024, Weichai Power's revenue was 215.69 billion yuan, with a net profit of 11.403 billion yuan, reflecting a 26.51% increase year-on-year [4]. - The company expects sales revenue for 2025 to be between 226.5 billion and 237.3 billion yuan, representing a growth of approximately 5%-10% [8]. Market Position - Weichai Power's heavy truck engine market share remains strong at 38.7%, with engine sales reaching 734,000 units, including 69,000 units exported, a 5% increase year-on-year [7]. - The intelligent logistics segment, particularly through its subsidiary KION Group, achieved a record revenue of 11.5 billion euros in 2024, with a net profit growth of 17.5% [7]. Profitability Metrics - The gross margin for 2024 is projected at 22.4%, with a net margin of 5.3% [6]. - The return on equity (ROE) is expected to be 13.2% in 2025, indicating strong profitability [6]. Future Outlook - The company is expected to continue its strong performance in core segments such as heavy truck engines and transmissions, with an anticipated net profit of 13.619 billion yuan in 2025 [8]. - The strategic focus on high-end products and overseas market opportunities is expected to enhance profitability further [8].