Daiwa's A+H Share Strategy: Daiwa's research indicates that its A+H share valuation premium strategy has performed exceptionally well, with cumulative relative returns increasing from 90% to 107.5% over two months, driven by rising global metal prices and China's construction machinery renewal cycle.
Impact on Specific Stocks: The strategy has notably benefited materials and industrial stocks, including CMOC, ZIJIN MINING, SANY HEAVY IND, and WEICHAI POWER, despite some experiencing short selling pressures.
Foreign Investment Trends: Many overseas investors are showing interest in Chinese tech companies, favoring H-shares due to geopolitical concerns, which may lead to increased foreign capital inflows and a potential rise in H-share prices.
Potential for A-Share Revaluation: As tech companies complete dual listings, their share prices may increase rapidly, creating opportunities for revaluation of A-shares compared to their H-share counterparts.
Wall Street analysts forecast 02338 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 02338 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast 02338 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 02338 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
0 Hold
0 Sell
Current: 24.400
Low
Averages
High
Current: 24.400
Low
Averages
High
HSBC Global Research
HSBC Global Research
Buy
upgrade
2026-01-16
Reason
HSBC Global Research
HSBC Global Research
Price Target
AI Analysis
2026-01-16
upgrade
Buy
Reason
The analyst rating from HSBC Global Research is based on several factors:
1. Sales Forecast Adjustment: The report indicates an increase in the 2026 heavy-duty truck (HDT) sales forecast from 980,000 units to 1.05 million units, attributed to the continuation of subsidy policies. This suggests a positive outlook for the sector despite an expected overall decline.
2. Market Conditions: The expectation that the HDT sector will trade sideways in the first half of 2026 until a catalyst emerges in the second half indicates a cautious but optimistic approach. The analysts believe that while there may be short-term challenges, there are potential growth opportunities later in the year.
3. Company-Specific Optimism: HSBC is particularly optimistic about WEICHAI POWER due to its performance and market position, leading to a preference for this stock over SINOTRUK in the first half of 2026. However, they also maintain a positive outlook for SINOTRUK, especially regarding its export leadership and potential catalysts in the second half of 2026.
4. Target Price Increases: The increase in target prices for both WEICHAI POWER and SINOTRUK reflects confidence in their future performance, justifying the Buy ratings assigned to both companies.
Overall, the ratings are influenced by a combination of improved sales forecasts, market conditions, company performance, and strategic positioning within the sector.
JPMorgan
JPMorgan
maintain
$31
2025-12-04
Reason
JPMorgan
JPMorgan
Price Target
$31
2025-12-04
maintain
Reason
JPMorgan has rated WEICHAI POWER as a top pick in the industrial sector for 2026 due to several key factors. Firstly, concerns regarding the potential strategic decoupling between WEICHAI POWER and SINOTRUK following the retirement of founder Tan Xuguang were alleviated by the appointment of Wang Zhijian as chairman of Shandong Heavy, which is the parent company of both firms. This leadership continuity is expected to maintain strategic alignment between the two companies.
Additionally, JPMorgan highlighted China's strong demand for heavy trucks, particularly in the second half of the year, and expressed optimism about a surge in sales of liquefied natural gas (LNG) trucks. WEICHAI POWER's leading position in the LNG heavy truck engine market further supports its potential for re-rating. As a result, the firm maintained an Overweight rating for WEICHAI POWER with a target price of HKD31.
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UBS
Neutral -> Buy
upgrade
2025-11-12
Reason
UBS
Price Target
2025-11-12
upgrade
Neutral -> Buy
Reason
The analyst rating for WEICHAI POWER was upgraded from Neutral to Buy due to several key factors. UBS raised its target price significantly from $18.5 to $27.8, reflecting increased confidence in the company's future performance. The upgrade is supported by a 3-5% increase in earnings forecasts for 2026-2027 and an 11-27% increase for 2028-2030, driven by higher revenue and improved earnings visibility from new business ventures. Additionally, the company's business transformation has exceeded expectations, with projections indicating that the contribution of power generation to net profit will rise substantially by 2030, which is expected to mitigate risks associated with electric trucks.
Jefferies
Jefferies
Buy
maintain
2025-11-12
Reason
Jefferies
Jefferies
Price Target
2025-11-12
maintain
Buy
Reason
The analyst rating for WEICHAI POWER was influenced by several factors highlighted in the article. Jefferies raised its target price from HKD18.8 to HKD23.7 and maintained a Buy rating due to the significant increase in the average selling price of large-bore engines, which rose to over RMB500,000 in the first three quarters of 2025, driven by demand for data center products. Additionally, the company's ongoing construction of a solid oxide fuel cell production line, despite the lack of disclosed capacity details, suggests potential for future growth. The expectation to meet the upper limit of the shipment target for data center-related products further supports a positive outlook for the company.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
