Group 1: Natural Gas Heavy-Duty Truck Engine Outlook - In the first half of the year, domestic sales of natural gas heavy-duty trucks reached 91,000 units, a year-on-year decrease of 16%, primarily due to a decline in sales in the second quarter [2] - Short-term outlook indicates that the replacement policy will include natural gas heavy-duty trucks for subsidies, which is expected to boost sales in the second half of the year [2] - Long-term, natural gas is projected to become a significant component in the heavy-duty truck industry, with a high penetration rate expected to be maintained [2] Group 2: Large Bore Engine Business Performance - In the first half of the year, sales of the M series large bore engines exceeded 5,000 units, representing a year-on-year growth of 41% [3] - Sales in the data center market approached 600 units, showing nearly a fivefold increase year-on-year [3] - The overall increase in volume and price of the M series large bore engines significantly contributed to the company's profits, with expectations of continued high industry demand [3] Group 3: New Energy Power Business Development - The new energy power business achieved revenue of 1.21 billion yuan in the first half of the year, reflecting a year-on-year growth of 37% [3] - The company anticipates that full-year revenue will more than double compared to the previous year [3] - The company has completed a comprehensive layout of products including batteries, motors, and electronic controls, with performance leading the industry [3]

Core Viewpoint - Weichai Power (000338) anticipates that the domestic sales of natural gas heavy trucks will reach 47,000 units in Q1 2025, with a penetration rate of 31% [1] Group 1: Industry Insights - The future supply-demand balance is expected to support natural gas prices in a stable and reasonable range, enhancing the application scenarios for natural gas heavy trucks due to their low-carbon and economic advantages [1] - The penetration rate of natural gas heavy trucks is projected to continue increasing [1] Group 2: Company Strategy - The company possesses strong R&D capabilities and technical accumulation, which will help it lead in the market share of natural gas heavy truck engines [1] - A recent notice from the Ministry of Transport on March 18 regarding the "old-for-new" policy will provide subsidies for natural gas heavy trucks, further boosting the demand for gas vehicle replacements [1] - The company will continue to drive industry upgrades through product innovation and aims to further enhance its market share [1]

Core Viewpoint - In February, domestic heavy truck sales reached 81,000 units, a year-on-year increase of 36% and a month-on-month increase of 13% [2][4]. Sales Performance - Cumulative sales of domestic heavy trucks from January to February totaled 154,000 units, showing a year-on-year decline of 2% [2][4]. - The sales of natural gas heavy trucks in February were 17,000 units, representing a year-on-year growth of 73% and a month-on-month growth of 72% [3][4]. - The penetration rate of natural gas in heavy trucks was 20% in February, with semi-trailer trucks at 37% [4]. Market Structure - The sales structure of heavy trucks indicates an increase in the proportion of engineering vehicles and a decrease in the proportion of tractor trucks [2][5]. - In February, the sales of semi-trailer trucks were 43,000 units, up 45% year-on-year, while heavy-duty cargo truck sales were 20,000 units, up 6% year-on-year [2][3]. Export Trends - The export performance of various heavy trucks showed divergence, with semi-trailer truck exports remaining flat year-on-year at 10,000 units [3][4]. - Exports of heavy non-complete vehicles reached 5,000 units in February, a year-on-year increase of 24% [3][4]. Natural Gas Heavy Trucks - The sales of natural gas semi-trailer trucks in February were 16,000 units, reflecting a year-on-year increase of 69% [3][4]. - The cumulative sales of natural gas heavy trucks from January to February reached 26,000 units, a year-on-year increase of 9% [3][4]. New Energy Heavy Trucks - In February, the sales of new energy heavy trucks were 10,000 units, a year-on-year increase of 226% [4][5]. - The penetration rate of new energy heavy trucks was 12% in February, with a cumulative penetration rate of 13% from January to February [4][5]. Competitive Landscape - In February, China National Heavy Duty Truck Group ranked first in heavy truck sales, with the top ten companies accounting for 91% of the cumulative market share [4][5]. - The expected heavy truck sales for 2025 are projected to be 1.026 million units, a year-on-year increase of 13% [5]. Investment Recommendations - The industry shows growth potential, particularly in domestic recovery and sustained export growth [5]. - Recommended stocks include Weichai Power, China National Heavy Duty Truck Group, CIMC Vehicles, and Foton Motor, with a suggestion to pay attention to FAW Liberation [5].