Jefferies has released a research report highlighting that Weichai Power (02338) is transitioning from a traditional engine manufacturer to a comprehensive supplier of equipment for AI data centers, covering diesel, natural gas, and solid oxide fuel cell systems. This transformation is supported by its parent company, Shandong Heavy Industry Group. The firm reaffirmed its "Buy" rating on Weichai Power and increased its target price for the Hong Kong-listed shares from HK$23.70 to HK$38.40. For the A-shares (000338.SZ), the target price was raised from RMB 22.00 to RMB 33.80. Jefferies also noted that Weichai Power’s diverse product portfolio positions it to potentially derive around 40% of its group profits from its power generation business by 2030. The bank revised its profit forecasts for the company to RMB 15.8 billion for the current year and RMB 19.8 billion for the following year, with contributions from the AI data center business estimated at 14% and 18%, respectively.