Minsheng Securities·2025-10-31 06:39Investment Rating - The report maintains a "Recommended" rating for Weichai Power [4][6]. Core Views - Weichai Power's Q3 2025 performance exceeded expectations, with revenue of 574.19 billion yuan, up 16.08% year-on-year, and a net profit of 32.34 billion yuan, up 29.49% year-on-year [1][2]. - The company is experiencing a robust growth in engine sales, with a total of 39,500 units sold in Q3 2025, representing a year-on-year increase of 19.94% [2][3]. - The expansion of the old-for-new vehicle policy is expected to boost domestic demand for heavy-duty trucks, particularly for natural gas engines [3]. Summary by Sections Financial Performance - For the first three quarters of 2025, Weichai Power reported revenue of 1,705.71 billion yuan, a 5.32% increase year-on-year, and a net profit of 88.78 billion yuan, a 5.67% increase year-on-year [1]. - In Q3 2025, the gross margin was 21.38%, slightly down from previous quarters due to intensified market competition [2]. Product Development - The company is optimizing its product structure, with significant growth in various segments including engines, complete vehicles, smart logistics, and agricultural machinery [3]. - The M series large-bore engines saw sales exceed 5,000 units, a 41% increase year-on-year, while data center engines surged by 491% year-on-year [3]. Market Outlook - The report anticipates revenue growth for Weichai Power, projecting revenues of 2,269.24 billion yuan in 2025, 2,372.4 billion yuan in 2026, and 2,443.57 billion yuan in 2027 [4][5]. - The net profit is expected to reach 120.3 billion yuan in 2025, with an EPS of 1.38 yuan, indicating a PE ratio of 10 times [4][5].