Weichai Power(000338) Changjiang Securities·2025-05-26 02:14Investment Rating - The report maintains a "Buy" rating for Weichai Power [6] Core Views - Weichai Power reported a revenue of 57.464 billion yuan for Q1 2025, representing a year-on-year growth of 1.92%. The net profit attributable to shareholders was 2.711 billion yuan, up 4.27% year-on-year. The projected net profits for 2025-2027 are 12.763 billion, 14.473 billion, and 15.396 billion yuan, corresponding to PE ratios of 10.39X, 9.16X, and 8.61X respectively. The report cites the old-for-new policy support, stabilization and recovery in the heavy truck industry, and stable cash flow as reasons for the positive outlook [2][4][10]. Summary by Sections Financial Performance - In Q1 2025, Weichai Power achieved a revenue of 57.464 billion yuan, with a year-on-year increase of 1.92%. The net profit attributable to shareholders was 2.711 billion yuan, reflecting a 4.27% year-on-year growth. The heavy truck sales for Q1 were 265,000 units, showing a year-on-year increase of 21.0% [2][4][10]. Strategic Initiatives - The company is advancing six strategic directions aimed at long-term development, focusing on adjusting product, business, and market structures. This includes accelerating the transition to new energy and digital intelligence, and expanding into large-diameter, aftermarket, non-road vehicles, and export businesses. The demand for high-end large-diameter power generation products is expected to increase, particularly in sectors like 5G data centers and mining [10]. Investment Outlook - The report projects net profits for 2025-2027 at 12.763 billion, 14.473 billion, and 15.396 billion yuan, with corresponding PE ratios of 10.39X, 9.16X, and 8.61X. The combination of supportive policies, industry recovery, and stable cash flow positions Weichai Power as a high-dividend quality stock, justifying the "Buy" rating [2][10].