Core Viewpoint - The report from CMB International indicates that Weichai Power (000338)(02338) experienced a 4% year-on-year decline in net profit for the first half of the year, amounting to 5.6 billion RMB, with a significant 11% drop in the second quarter profit attributed to higher-than-expected distribution costs and the gradual confirmation of restructuring costs [1] Financial Performance - Weichai Power's net profit for the first half of the year decreased to 5.6 billion RMB, reflecting a 4% year-on-year decline [1] - The second quarter profit saw a more pronounced decline of 11% compared to the previous year [1] Dividend and Payout Ratio - The company plans to distribute an interim dividend of 0.358 RMB per share, maintaining a payout ratio of 55%, consistent with the previous year's full-year ratio [1] Target Price Adjustments - CMB International raised the target price for Weichai Power to 19.5 HKD from 18 HKD, and for Weichai Power (000338.SZ) to 19.9 RMB from 18.7 RMB, while maintaining a "Buy" rating [1] Earnings Forecast - The earnings forecast for Weichai Power for 2025 to 2027 has been revised down by 1% to 4% [1] - Despite the downward revision, the growth outlook for the company remains positive, driven by the recovery in the heavy truck market due to replacement demand, explosive growth in engine business for data centers, and the restructuring costs of KION Group being 75% to 82% accounted for, indicating a recovery phase in profitability [1]