Weichai Power(SZ:000338) 汽车琰究·2025-05-01 02:33Core Viewpoint - The company reported a strong performance in Q1 2025, with revenue and net profit exceeding market expectations, indicating successful diversification and growth strategies [2][4]. Revenue Analysis - In Q1 2025, the company achieved revenue of 57.464 billion yuan, a year-on-year increase of 1.92% and a quarter-on-quarter increase of 6.94% [2]. - The engine supply volume was 38,000 units, down 17.98% year-on-year but up 15.57% quarter-on-quarter, while natural gas engine supply reached 25,200 units, down 17.67% year-on-year but up 55.07% quarter-on-quarter [2]. - The company's revenue growth occurred despite a decline in engine supply, reflecting successful diversification efforts [2]. Profitability Metrics - The net profit attributable to shareholders for Q1 2025 was 2.711 billion yuan, up 4.27% year-on-year but down 9.72% quarter-on-quarter [2]. - Adjusting for a provision of 472 million yuan from subsidiary KION GROUP AG, the adjusted net profit was 3.183 billion yuan, representing a year-on-year increase of 22.42% [2]. - The gross margin for Q1 2025 was 22.23%, with a slight year-on-year increase of 0.12 percentage points but a decrease of 1.92 percentage points quarter-on-quarter [2]. Expense Analysis - The expense ratios for sales, management, R&D, and financial costs were 5.63%, 7.12%, 3.55%, and -0.36%, respectively [2]. - Management expense ratio increased significantly due to provisions related to efficiency plans at KION, while financial expense ratio decreased due to increased foreign exchange gains [2]. Product Structure and Share Buyback - The company is optimizing its product structure, with steady growth in engines, vehicles, smart logistics, and agricultural equipment [3]. - The agricultural equipment segment saw a significant increase, with subsidiary Weichai Lovol achieving revenue of 17.393 billion yuan in 2024, up 18.38% year-on-year [3]. - The company announced a share buyback plan of no less than 500 million yuan and up to 1 billion yuan, reflecting management's confidence in the company's future [4]. Market Policy Impact - The expansion of the old-for-new vehicle policy by the Ministry of Transport and other agencies is expected to boost demand for natural gas heavy trucks [5]. - The policy now includes subsidies for natural gas heavy trucks and vehicles meeting the National IV emission standards, potentially driving an additional demand of approximately 76,000 units [5]. Investment Outlook - The company is positioned as a leader in the domestic engine sector, with projected revenues of 231.11 billion yuan, 241.61 billion yuan, and 248.86 billion yuan for 2025-2027 [6]. - Net profit attributable to shareholders is expected to reach 12.749 billion yuan, 14.226 billion yuan, and 15.445 billion yuan for the same period [6]. - The earnings per share (EPS) are projected to be 1.46 yuan, 1.63 yuan, and 1.77 yuan, with corresponding price-to-earnings (PE) ratios of 10, 9, and 9 times [6].