Weichai Power(000338) CMS·2025-05-06 07:06Investment Rating - The report maintains a "Strong Buy" rating for Weichai Power [3] Core Views - The company's Q1 2025 performance met expectations, with revenue of 57.46 billion yuan, a year-on-year increase of 1.9% and a quarter-on-quarter increase of 6.9%. The net profit attributable to shareholders was 2.71 billion yuan, up 4.3% year-on-year but down 9.7% quarter-on-quarter [1] - The company announced a share buyback plan, reflecting confidence in its future development, with a total buyback amount of 500 to 1,000 million yuan and a maximum buyback price of 23.57 yuan per share [6] - The report forecasts continued growth in revenue and net profit for 2025-2027, with total revenue expected to reach 229.26 billion yuan in 2025, growing by 6% year-on-year, and net profit expected to be 12.65 billion yuan, growing by 11% year-on-year [6] Financial Data and Valuation - Total revenue projections for 2023 to 2027 are as follows: 213.96 billion yuan (2023), 215.69 billion yuan (2024), 229.26 billion yuan (2025E), 247.74 billion yuan (2026E), and 268.94 billion yuan (2027E) [2] - The projected net profit for the same period is: 9.01 billion yuan (2023), 11.40 billion yuan (2024), 12.65 billion yuan (2025E), 14.94 billion yuan (2026E), and 17.59 billion yuan (2027E) [2] - The report indicates a PE ratio of 14.7 for 2023, decreasing to 7.5 by 2027, suggesting an attractive valuation [9] Key Financial Ratios - The gross margin for Q1 2025 was 22.2%, with a net margin of 4.9% [6] - The report highlights a projected ROE of 12.9% for the current period, increasing to 16.7% by 2027 [9] - The debt-to-asset ratio is projected to decrease from 66.3% in 2023 to 58.9% in 2027, indicating improving financial stability [9]