Weichai Power(SZ:000338) Soochow Securities·2024-03-25 16:00Investment Rating - The investment rating for Weichai Power is "Buy" (maintained) [1] Core Views - The company reported a strong performance in 2023, with total revenue reaching 213.96 billion yuan, a year-on-year increase of 22.15%. The net profit attributable to shareholders was 9.01 billion yuan, up 83.77% year-on-year [3][4] - The company's various business segments are performing well, with a gross margin of 21.09%, an increase of 3.29 percentage points year-on-year. The heavy truck industry is recovering, with sales reaching 910,000 units [3][4] - The outlook for the heavy truck segment is positive, driven by high market share and profitability of natural gas heavy trucks, as well as the expansion of large-bore engine products [4] Financial Performance Summary - In 2023, Weichai Power achieved total revenue of 213,958 million yuan, with a year-on-year growth of 22.15%. The net profit attributable to shareholders was 9,014 million yuan, reflecting an 83.77% increase year-on-year [2][3] - The company’s earnings per share (EPS) for 2023 was 1.03 yuan, with a price-to-earnings (P/E) ratio of 15.75 [2][3] - The company expects net profits of 11.59 billion yuan in 2024, 13.37 billion yuan in 2025, and 15.70 billion yuan in 2026, with corresponding EPS of 1.33, 1.53, and 1.80 yuan respectively [4] Business Segment Performance - The engine and heavy truck engine shipments were 736,000 and 306,000 units respectively in 2023, with year-on-year increases of 28.5% and 96.0%. The market share for natural gas heavy truck engines was 65%, up 6 percentage points year-on-year [3][4] - The company’s gearbox and axle shipments were 838,000 and 743,000 units, reflecting year-on-year increases of 42.0% and 39.5% [3][4] - The profitability of the Kion business segment improved, achieving a net profit margin of 2.7%, an increase of 1.7 percentage points year-on-year [3][4]