On November 6, Weichai Power (2338.HK) opened with a gap-up of over 5% and extended gains to surge more than 13% during early trading, reaching HK$20.38 per share—its highest level since March 2021.

The rally follows Ceres Power's announcement on November 5 of signing a solid oxide fuel cell (SOFC) manufacturing license agreement with Weichai Power, further strengthening their existing partnership. Weichai will establish a new factory to produce batteries and stacks targeting data centers, commercial, and industrial power markets, with related revenue expected to be recognized in fiscal year 2026.

A research report from Founder Securities highlights that Weichai Power's acquisition of the Ceres SOFC license opens another growth avenue in the power energy sector. The report also notes the company's steady performance this year, with Q1-Q3 revenue and net profit attributable to shareholders rising 5% and 6% YoY respectively, reinforcing expectations for full-year profits exceeding RMB 12 billion. Currently trading at a P/E below 12x—in the bottom 40% percentile of its three-year range—the stock offers high margin of safety. As new energy heavy-duty truck penetration stabilizes early next year, long-term pessimism over its core business may reverse, creating significant valuation upside. The brokerage maintains its "recommend" rating.