JPMorgan's Top Pick: JPMorgan has identified WEICHAI POWER (02338.HK) as a top industrial sector pick for 2026, despite previous concerns over leadership changes following the retirement of founder Tan Xuguang.
Leadership Stability: The appointment of Wang Zhijian as chairman of Shandong Heavy is expected to ensure strategic continuity between WEICHAI POWER and SINOTRUK (03808.HK), alleviating investor concerns.
Market Demand: The report highlights strong demand for heavy trucks in China, particularly in the second half of the year, with expectations for increased sales of liquefied natural gas (LNG) trucks.
Rating and Target Price: WEICHAI POWER maintains an Overweight rating with a target price set at HKD31, indicating potential for re-rating in the market.
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: 22.440
Low
Averages
High
Current: 22.440
Low
Averages
High
JPMorgan
JPMorgan
maintain
$31
Al Analysis
2025-12-04
Reason
JPMorgan
JPMorgan
Price Target
$31
Al Analysis
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.
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.
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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.
Citi
Neutral
to
Hold
upgrade
2025-11-11
Reason
Citi
Price Target
2025-11-11
upgrade
Neutral
to
Hold
Reason
Citi raised its target price for WEICHAI POWER from HKD16.3 to HKD21.3 due to the company's better-than-expected 3Q25 results and strong global demand for power in AI data centers. The firm also increased its sales forecasts for large-bore engines for FY25-27, anticipating significant contributions to net profit from the data center market. Consequently, Citi elevated its net profit forecasts for WEICHAI POWER for those years. Despite these positive adjustments, the rating for WEICHAI POWER remained Neutral.
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.
