Zhongyuan Securities·2026-03-30 10:24Investment Rating - The report assigns a "Buy" investment rating for the company, indicating an expected increase of over 15% relative to the CSI 300 index within the next six months [14][28]. Core Views - The company achieved a revenue of 231.81 billion yuan in 2025, a year-on-year increase of 7.5%, while the net profit attributable to shareholders was 10.93 billion yuan, a decrease of 4.2% year-on-year [6][7]. - The company is transitioning from a cyclical heavy truck leader to a global high-end equipment group, with strong growth in its AIDC (Artificial Intelligence Data Center) and power generation businesses [14]. - The company’s traditional business is recovering steadily, with significant growth in the heavy truck sector and a notable increase in sales of new energy vehicles [11][12]. Financial Performance - In Q4 2025, the company reported a revenue of 61.24 billion yuan, a quarter-on-quarter increase of 6.7% and a year-on-year increase of 14.0% [6][7]. - The gross profit margin for 2025 was 21.48%, a decrease of 0.95 percentage points year-on-year, while the net profit margin was 5.90%, down 0.72 percentage points year-on-year [9]. - The company plans to distribute a cash dividend of 3.74 yuan per 10 shares (including tax) [6]. Business Segments - The company’s engine sales reached 743,000 units, a year-on-year increase of 1.3%, while the sales of heavy-duty trucks grew by 29.41% to 153,000 units [7][11]. - The AIDC business showed strong demand, with backup power sales increasing by 259% in 2025, and the company launched a 5 MW high-speed diesel generator product [12][13]. - The company’s partnership with BYD in the power battery sector is expected to mitigate the impact of electrification on traditional engine business [11]. Future Projections - The company is projected to achieve net profits of 14.06 billion yuan, 15.31 billion yuan, and 16.22 billion yuan for the years 2026, 2027, and 2028, respectively [14][16]. - The expected earnings per share (EPS) for 2026, 2027, and 2028 are 1.61 yuan, 1.76 yuan, and 1.86 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 14.56, 13.38, and 12.62 [14][16].