Shares of Weichai Power (02338) opened 10% higher in early Hong Kong trading, though gains later narrowed to 5%. As of the latest update, the stock was trading up 5.41% at HK$31.16, with turnover reaching HK$372 million.

According to the latest TrendForce report, cloud service providers (CSPs) are accelerating infrastructure deployment to meet surging AI application demand. Global data center electricity demand is projected to hit 161GW by 2026, marking a roughly 31% year-on-year increase, with AI servers accounting for approximately 33.4% of total capacity demand.

Changjiang Securities noted that the company has successfully entered the core supply chain of major U.S.-based CSPs for its diesel generator business. In the first half of the year, Weichai Power sold over 1,400 AIDC diesel generator units, reflecting a 137% sequential and year-on-year growth. Regarding gas generators, the company's gas engines have obtained UL certification in the United States and are set to begin shipment. With ample production capacity, the company's sales targets for next year could be revised upward further.

In the SOFC segment, Weichai Power has signed cooperation agreements with strategic clients across Europe, Asia-Pacific, and other regions. As production capacity materializes by year-end, this business is expected to contribute profit growth next year.