The Zhitong Finance App learned that Citi released a research report stating that it gave Weichai Power (02338) a “neutral” rating, raised the Group's net profit forecast for each year of 2024-26 by 6.7%, 0.7% and 0.7%, respectively, and raised the target price from HK$15.4 to HK$17.2.

According to the report, the company recorded revenue of 56.4 billion yuan in the first quarter, up 6% year on year, up 5% from quarter to quarter, and net profit of 2.6 billion yuan, up 40% year on year and 3% from quarter to quarter, in line with Citibank and market expectations. Factors driving Weichai Power's first-quarter results include a 13% year-on-year increase in diesel engine sales and a 3% increase in heavy truck sales, continued growth in sales of large bore engines (large-bore engines), and a 3.2 percentage point increase in gross margin due to improved revenue mix.