Weichai Power surges 58% in 2023 with bold new energy and global expansion plans
Weichai Power Co., Ltd. has started the year with a strong hi, with shares climbing over 58% in 2023. The company is now consolidating near the top of its 52-week range, last trading at HK$18.85 per share. Recent developments include leadership changes, robust revenue growth, and an expanded focus on new energy and global markets.
The company’s new energy division reported a 37% year-on-year revenue increase, reflecting its push into cleaner technologies. At the same time, engine exports rose by 30% in the first nine months of the last reporting period, driven by an aggressive global expansion strategy.
Weichai Power is also targeting future growth in high-performance engines for industrial and critical infrastructure use, with a planned launch by 2026. Analysts have raised profit estimates for 2026 and 2027 by 3% to 5%, pointing to stronger revenue visibility in these areas. On governance, Zhang Weili has been nominated as the new independent chairman, succeeding Zhao Fuquan. This move follows the release of 21.95 million previously restricted shares, increasing market liquidity but potentially adding short-term selling pressure. Looking ahead, the power generation segment could account for 44% of net profit by 2030. The company is prioritising strategic areas like data centre power supply and new energy solutions to sustain long-term growth.
Weichai Power’s recent gains and strategic shifts position it for continued expansion in both traditional and emerging markets. With upgraded profit forecasts and a clearer focus on high-growth sectors, the company aims to strengthen its market presence in the coming years. The stock’s current consolidation near its 52-week high reflects investor confidence in its direction.
