Daiwa's report suggests that the demand for liquefied natural gas (LNG) trucks is expected to further decline, and reiterates a cautious view on Weichai Power (02338.HK). Although the bank is bullish on Weichai Power's expansion into non-HDT engine business and the development of electric truck supply chain, it believes that it will take time to take effect.

Daiwa lowered Weichai Power's revenue forecast for 2024 to 2026 by 3% to reflect weaker-than-expected local HDT demand outlook, downgrading the group's rating from 'hold' to 'underperform the market,' and reducing the target price from 13.5 yuan to 11 yuan.