Core Viewpoint - The A-share market is expected to stabilize at the support levels of 3100 points for the Shanghai Composite Index and 9200 points for the Shenzhen Component Index, leading to a structural market trend favoring domestic demand, domestic substitution, and high-dividend sectors [2][5][6]. Market Overview - The A-share market experienced significant adjustments due to escalating trade tensions with the United States, but showed signs of stabilization in the latter half of the week [3]. - Early in the week, the Shanghai Composite Index fell by 7.34% and the Shenzhen Component Index dropped by 9.66%, with over 5200 stocks declining and nearly 3000 hitting the daily limit down [4]. - Sectors heavily reliant on exports to the U.S., such as the Apple supply chain, automotive parts, and communication equipment, faced the largest declines, while technology stocks showed some recovery later in the week [4]. - The agricultural sector became a market highlight following the release of a policy aimed at advancing agricultural technology and promoting independent innovation in seed industries, leading to active stock performance in related companies [4]. - The high-speed rail sector saw significant gains, and the duty-free segment of consumption benefited from new tax refund measures aimed at attracting foreign tourists [4]. Market Outlook - In the context of overseas market declines and ongoing trade tensions, the health and stability of the A-share market are deemed crucial [5]. - Institutions such as Central Huijin, China Chengtong, and China Guoxin announced plans to increase their holdings in A-shares starting April 7, indicating confidence in the market [5]. - The National Financial Regulatory Administration's announcement to adjust the regulatory ratio of insurance funds to equity assets aims to enhance support for the capital market and the real economy [5]. - A number of A-share companies have also announced stock repurchases, reflecting their confidence in future growth prospects [5]. - The resilience and potential of the Chinese economy are highlighted, with a focus on companies that are becoming globally competitive as key stabilizing forces in the market [5].

Investment Rating - The investment rating for Weichai Power is "Outperform the Market" [2][7]. Core Viewpoints - Weichai Power's revenue for 2024 is projected to be 215.69 billion RMB, with a year-on-year growth of 0.8%. The net profit is expected to reach 11.403 billion RMB, reflecting a significant increase of 26.5% year-on-year [7][8]. - The company is expected to maintain steady growth in 2025, with sales revenue estimated between 226.5 billion and 237.3 billion RMB, representing a growth of approximately 5-10% [7][8]. - The report highlights strong performance in high-end power systems and logistics equipment, with significant growth in the M series high-power density engines and the Kael Group's logistics solutions [7][8]. Financial Data and Forecast - Key financial data for Weichai Power includes: - Revenue: 213,958 million RMB in 2023, projected to grow to 235,520 million RMB in 2025 [6][11]. - Net Profit: 9,014 million RMB in 2023, expected to increase to 12,645 million RMB in 2025 [6][11]. - EPS: Expected to rise from 1.03 RMB in 2023 to 1.45 RMB in 2025 [6][11]. - Gross Margin: Expected to improve from 22.4% in 2024 to 23.0% in 2027 [6][11]. - ROE: Projected to increase from 13.2% in 2024 to 16.2% in 2027 [6][11]. Business Segment Performance - The revenue forecast by business segment for 2024 includes: - Intelligent Logistics: 88,726 million RMB - Agricultural Equipment: 18,345 million RMB - Complete Vehicles and Key Components: 89,779 million RMB [8]. - The gross profit margin for Intelligent Logistics is expected to be 26.9% in 2024, with a gradual increase to 28.0% by 2027 [8]. Valuation Comparison - The report suggests a reasonable valuation range for Weichai Power at 18.84 to 21.74 RMB per share, based on a PE ratio of 13-15 times for 2025 [7][9].

Group 1 - The Shanghai-Shenzhen 300 Automotive Parts Index is reported at 6280.13 points, with the top ten weights including Xingyu Co., Ltd [1] - The index has decreased by 7.05% over the past month, increased by 0.44% over the past three months, and has declined by 0.98% year-to-date [1] - The index is designed to reflect the overall performance of different industry companies within the Shanghai-Shenzhen 300 Index, categorized into 11 primary industries, 35 secondary industries, over 90 tertiary industries, and more than 200 quaternary industries [1] Group 2 - The Shanghai Stock Exchange accounts for 87.10% of the holdings in the Automotive Parts Index, while the Shenzhen Stock Exchange accounts for 12.90% [1] - The composition of the index by industry shows that automotive interior and exterior parts account for 55.63%, automotive system components for 15.89%, tires for 15.58%, and automotive electronics for 12.90% [1] - The index sample is adjusted every six months, with adjustments implemented on the next trading day following the second Friday of June and December [2]