On September 4, WEICHAI POWER rose 3.45% in regular trading, trading at HK$32.4 per share, with turnover of HK$245 million.
On the news front, Hang Seng Indexes Company previously announced that WEICHAI POWER will be added to the Hang Seng Index as a constituent stock, with changes to be implemented after todays close and formally effective on September 7. The anticipated passive fund rebalancing demand is providing direct price support. Goldman Sachs estimated potential passive net inflows for WEICHAI POWER of between US$160 million and US$470 million.
Meanwhile, multiple investment banks have recently reiterated bullish stances. Morgan Stanley maintained an Overweight rating with a HK$46 target, raising net profit forecasts for the next two years by 15% citing stronger AIDC product growth. Bank of America raised its target price to HK$47.5 with a Buy rating. The company reported H1 revenue of RMB 123.16 billion, up 8.85% year-on-year, and net profit of RMB 7.7 billion, up 36.46%, with AIDC backup power engine sales surging 1.3 times year-on-year, underscoring its transformation from a traditional truck engine maker into a broader energy and power platform.
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