Ping An Securities·2024-03-26 16:00Investment Rating - The investment rating for Weichai Power is "Recommended (Maintain)" [2][6]. Core Views - In 2023, Weichai Power achieved a revenue of 214 billion yuan, a year-on-year increase of 22%, and a net profit attributable to shareholders of 9 billion yuan, up 84% year-on-year. The company plans to distribute a cash dividend of 2.93 yuan per 10 shares [3][4]. - The heavy truck engine market share increased to 40.9%, with a significant growth in engine sales, particularly heavy truck engines, which saw a 96% year-on-year increase [4][6]. - The company expects a revenue growth of 5%-10% in 2024, with heavy truck sales projected to reach 950,000 to 1 million units [6]. Summary by Sections Financial Performance - In 2023, Weichai Power's engine revenue grew by 44% to 47.9 billion yuan, with a net profit margin of 15% [4][6]. - The company sold 736,000 engines, a 28.5% increase year-on-year, and 83,800 gearboxes, up 42% [4]. - The net profit for 2023 reached a historical high of 7.85 billion yuan, reflecting a 113% increase year-on-year [4][6]. Market Position - Weichai Power's heavy truck engine installation rate improved by 8.8 percentage points year-on-year, indicating a strong competitive position in the market [4]. - The company maintained a leading position in the core components of the truck industry, including engines and gearboxes [6]. Future Outlook - The forecast for 2024/2025 net profit is adjusted to 9.9 billion yuan and 10.5 billion yuan, respectively, with a first-time estimate for 2026 at 11.4 billion yuan [6]. - The company is expected to continue benefiting from the recovery of its subsidiary Kion in the intelligent logistics sector, which achieved record revenue in 2023 [4][6].