① Weichai Power released a performance forecast. Benefiting from the recovery of the heavy truck market and structural growth opportunities in the industry, the company's performance for the full year of 2023 is expected to increase by up to 90%; ② Industry insiders expect demand in the heavy truck industry to reach 1 million vehicles in 2024, and the heavy truck industry will perform well in the next few years.
Financial Services Association, January 23 (Reporter Fang Yanbo) Benefiting from the recovery of the heavy truck market and structural growth opportunities in the industry, the performance of power leader Weichai Power (000338.SZ) increased dramatically for the full year of 2023.
This evening, Weichai Power announced a pre-increase in performance. The company expects to achieve net profit of 8.584 billion yuan to 9.32 billion yuan in 2023, an increase of 75%-90%; net profit after deducting non-return to mother of 7.39 billion yuan to 8.21 billion yuan, an increase of 125% to 150% over the previous year; and basic earnings per share are about RMB 0.99 yuan to 1.08 yuan.
The relevant person in charge of the company told the Financial Federation reporter that in 2023, the heavy truck market ushered in an upward inflection point, and the industry as a whole entered a channel of rising prosperity. While stepping on the pace of industry development, the company grasped the structural growth opportunities of the industry and increased R&D innovation and market development in segments such as heavy natural gas trucks and overseas markets, leading to a significant increase in the company's performance.
Weichai Power is a leading enterprise in the Chinese engine industry, and its products have a high market share in the fields of heavy trucks, construction machinery, agricultural machinery, etc.
According to statistics from the China Association of Automobile Manufacturers, China's heavy truck market sold a total of 910,000 vehicles in 2023, a net increase of 239,000 vehicles over 2022, an increase of 36%. On a month-by-month basis, with the exception of the year-on-year decline in sales in January and December, all other months achieved positive growth. Among them, March had the highest sales volume in a single month, reaching 115,000 units.
It is worth mentioning that the two major segments of natural gas trucks and exports both reached record highs for the whole year. Among them, heavy natural gas trucks sold 152,000 units a year, with terminal sales reaching a maximum of 25,000 units in a single month; annual heavy truck exports were about 276,000 units, an increase of nearly 60% over the previous year.
The industry is generally optimistic about whether the recovery in the heavy truck industry can continue in 2024.
Some analysts said that at this stage, demand for heavy trucks in overseas markets remains high. Coupled with driving factors such as the demand for industry updates, the important position of heavy trucks in logistics and transportation, and their own efficiency advantages, the heavy truck industry's demand is expected to reach 1 million vehicles in 2024, and the heavy truck industry will perform well in the next few years.
The company said that the recovery of the industry has brought development opportunities to the company's heavy truck related business sector. In the future, the company will continue to optimize its industrial layout, focus on market segments, and further promote performance growth through increasing the market share and profitability of related businesses. At the same time, the company will accelerate the development of strategic businesses such as large bore engines, hydraulic powertrains, agricultural equipment, smart logistics and new energy, and is committed to achieving high-quality and steady growth.
Industry leaders are often favored by institutional investors under the recovery of the industry. The reporter noticed that recently Weichai Power was encouraged by JP Morgan Chase & Co., an internationally renowned investment agency, to increase its positions. According to the Stock Exchange's latest equity disclosure, JP Morgan Chase & Co. increased its holdings of Weichai Power by 1.9863 million shares at an average price of HK$12.8738 per share, involving approximately HK$25.572 million.
The aforementioned analyst said that the increase in the holdings of overseas investment institutions reflects the capital market's optimism about the prospects of the heavy truck industry, and also confidence in Weichai Power's strategic layout and performance growth.