Economic Observation Network Citigroup released a research report on October 14th, analyzing the recent stock price performance, third quarter performance, and related business progress of Weichai Power (02338. HK).

Institutional Perspective
Citigroup pointed out that Weichai Power's stock price has fallen by 10% in the past week, and the valuation gap with the AIDC index has widened to the widest point of the year - H-shares are about 39% lower than the relevant weighted index Citigroup expects its Q3 net profit to be around 4-4.1 billion yuan, with approximately 1300 passive AIDC diesel engines shipped, slightly lower than 1400 in the first half of the year, and gas engines have not yet been shipped externally This has poured cold water on the narrative of "AI power growth stocks". The key is to look at the Q3 financial report on October 30th. If the actual performance is close to Citigroup's forecast (revenue of 56.6 billion/net profit of 4-4.1 billion), then the current valuation of 14.2 times TTM is not expensive - Zhongtai Securities' 2026 PE is only 13.4 times Whether the shipment volume of AIDC diesel engines has rebounded month on month and when gas engines will land are the core signals for judging the quality of the second growth curve. In addition, Weichai Power's H-share dividend yield has risen to 4.19%, with a safety cushion below.

The above content is based on publicly available information and does not constitute investment advice.