Morgan Stanley has lowered the target price for Weichai Power (02338.HK) from 18 yuan to 16 yuan, with a target price forecasted PE ratio of 10 times next year, maintaining a 'shareholding' rating.
The bank has lowered its revenue forecast for the company from this year to 2026 by 2% to 3%, reflecting lower-than-expected heavy truck sales in the second half of this year. The bank expects the company's gross margin to moderately expand from this year to 2026, lowering the forecast for the company's net profit this year by 6%, and lowering the forecasts for net profits next year and the following year by 1% and 4% respectively.
The bank expects the heavy truck industry to still be in a moderate upward cycle in the next year and the following year, which will support the company's profit growth.