2025-08-11 14:06Summary of AIDC Diesel Engine Industry Conference Call Industry Overview - The global high-power diesel engine market is dominated by Cummins, Caterpillar, and MTU, holding over 60% market share, with revenue growth of approximately 20% year-on-year in the first half of 2024, indicating robust industry demand [1][4] - Yuchai International reported revenue of 13.8 billion RMB in the first half of the year, a year-on-year increase of 34%, with high-power diesel engine revenue around 4 billion RMB, showing a growth rate close to 80% [1][6] Key Insights - AI investment is driving demand for computing power, with a projected 40% year-on-year growth in global computing power investment in 2024, which is expected to boost demand for diesel engines over 1,800 kW [1][5] - The peak demand for diesel engines is anticipated to reach 30,000 units between 2028 and 2030, expanding the market space to 40-50 billion RMB [1][5] - The engine industry is complex, involving the synchronized expansion of thousands of components, requiring coordination among various stakeholders, leading to a steady expansion pace [1][8] Future Demand and Supply Dynamics - By 2030, industry demand is expected to double, but new capacity release will be limited, maintaining a tight supply-demand balance in the domestic market for the next two to three years [1][7] - Key manufacturers capable of mass production include Cummins, Caterpillar, MTU, Weichai, Yuchai, and Shanghai Lingzhong, with foreign companies adopting conservative expansion plans [1][7] Investment Opportunities - The current demand growth in the engine industry is expected to continue, with a tight balance likely to persist, providing significant growth potential for core companies and domestic replacement enterprises [1][9] - Recommended companies for investment include Weichai Power and Yuchai International, which have shown promising mid-year report data under the current market conditions [2][10] Risks to Consider - Potential risks include underperformance of AIDC investments and significant increases in raw material prices, which could impact industry development and profit levels [2][11]