Weichai Power Co.,Ltd. (02338) saw its shares decline by over 4%. At the time of writing, the stock was down 3.37% to HKD 40.18, with a trading volume of HKD 427 million.

Analysts have provided insights into the stock's movement. Daiwa's research report indicates that its latest forecasts project Weichai Power's net profit to grow by 14% to 24% year-on-year from 2027 to 2028, revised up from a previous estimate of 6% to 14%. This upward revision is primarily attributed to robust demand from AI data centers. While Daiwa maintains a positive long-term outlook for Weichai Power due to this strong AI data center demand, it notes potential near-term pressure on the company's LNG heavy-duty truck business, should conflicts in the Middle East conclude, alongside current valuation considerations.

J.P. Morgan's research report suggests Weichai Power is benefiting from a shift in investor focus away from traditional heavy-duty truck engines toward the energy transition, as well as from strong quarterly results and upward guidance revisions from global peers. The report highlights that the global power supply market for AI data centers is extremely tight, with customers prioritizing supply speed and delivery capability. J.P. Morgan believes the market is currently undergoing a reassessment of Weichai Power's valuation and continues to regard it as a top pick within the sector.