Soochow Securities·2025-11-02 04:31Investment Rating - The investment rating for Weichai Power is "Buy" (maintained) [1] Core Views - The report highlights that Weichai Power's Q3 performance is impressive, benefiting from the recovery in the heavy truck industry [1] - The company's engine sales remain stable, with notable performance in natural gas heavy truck engines [1] - The report adjusts the profit forecast for 2025-2027 due to the impact of layoffs at Kion and industry competition, while maintaining a positive outlook on the company's valuation and market position [1] Financial Performance Summary - In Q3 2025, Weichai Power achieved total revenue of 57.4 billion yuan, with a year-on-year increase of 16.1% and a quarter-on-quarter increase of 3.1% [1] - The net profit attributable to shareholders for Q3 2025 was 3.23 billion yuan, reflecting a year-on-year increase of 29.5% and a quarter-on-quarter increase of 10.3% [1] - Engine sales in Q3 2025 reached approximately 174,000 units, a year-on-year increase of 2.4%, with heavy truck engines accounting for 63,000 units, up 5% year-on-year [1] - The gross margin for Q3 2025 was 21.4%, slightly down by 0.7 percentage points year-on-year and 0.8 percentage points quarter-on-quarter [1] - The report projects total revenue for 2025 to be 228.63 billion yuan, with a net profit of 12.3 billion yuan, corresponding to an EPS of 1.41 yuan [1][8]