HONG KONG ECONOMIC TIMES, July 7 - Weichai Power (02338) is up 3%, trading at HK$30.36, with approximately 260,000 shares traded, involving HK$7.79 million.
JPMorgan has raised its target price for Weichai Power, citing improved shipment outlook, resilient profit margins, accelerated growth in AI data center business, and progress in the commercialization of solid oxide fuel cells (SOFC). JPMorgan analysts, including Karen Li, wrote in a research report that the recent share price correction of this Chinese manufacturer stems from negative market sentiment toward the AI data center power supply chain and macro headwinds, rather than deterioration in Weichai's operational execution or fundamentals. The stock has fallen over 30% from its historical high in May.
The brokerage stated that industry benchmarking data from Bloom Energy, Ceres, and leading marine engine/gas engine companies all indicate that Weichai has multi-year growth potential, and the upside potential from overseas and domestic AIDC computing power supply demand, as well as its solid oxide fuel cell business, has not been fully reflected in market consensus or valuations. JPMorgan maintains an Overweight rating on Weichai Power, raising its target price from HK$55 to HK$57.
Currently, the Hang Seng Index stands at 24,172, down 108 points or 0.4%, with turnover of nearly HK$3.2 billion on the main board. The Hang Seng China Enterprises Index is at 8,095, down 33 points or 0.4%. The Hang Seng Tech Index is at 4,209, down 13 points or 0.3%. (vs)
JPMorgan has raised its target price for Weichai Power, citing improved shipment outlook, resilient profit margins, accelerated growth in AI data center business, and progress in the commercialization of solid oxide fuel cells (SOFC). JPMorgan analysts, including Karen Li, wrote in a research report that the recent share price correction of this Chinese manufacturer stems from negative market sentiment toward the AI data center power supply chain and macro headwinds, rather than deterioration in Weichai's operational execution or fundamentals. The stock has fallen over 30% from its historical high in May.
The brokerage stated that industry benchmarking data from Bloom Energy, Ceres, and leading marine engine/gas engine companies all indicate that Weichai has multi-year growth potential, and the upside potential from overseas and domestic AIDC computing power supply demand, as well as its solid oxide fuel cell business, has not been fully reflected in market consensus or valuations. JPMorgan maintains an Overweight rating on Weichai Power, raising its target price from HK$55 to HK$57.
Currently, the Hang Seng Index stands at 24,172, down 108 points or 0.4%, with turnover of nearly HK$3.2 billion on the main board. The Hang Seng China Enterprises Index is at 8,095, down 33 points or 0.4%. The Hang Seng Tech Index is at 4,209, down 13 points or 0.3%. (vs)
