Weichai Power (2338.HK) experienced a significant surge in its stock price during the intraday trading session, soaring by 14.35% to reach HK$20.38 per share. This marks the highest level for the stock since March 2021, reflecting strong investor confidence in the company's latest strategic move.

The dramatic rise in Weichai Power's stock price comes on the heels of a crucial announcement made the previous day. The company signed a solid oxide fuel cell (SOFC) manufacturing license agreement with Ceres Power, further cementing their existing partnership. This agreement allows Weichai to establish a new factory for producing batteries and stacks, targeting data centers, commercial, and industrial power markets. The financial impact of this deal is expected to be reflected in the company's fiscal year 2026 results.

A research report from Founder Securities highlights the significance of this development, noting that the acquisition of the Ceres SOFC license opens up new growth opportunities for Weichai Power in the power energy sector. The report also underscores the company's robust performance in the current fiscal year, with Q1-Q3 revenue and net profit attributable to shareholders showing year-on-year increases of 5% and 6% respectively. With full-year profits expected to exceed RMB 12 billion and the stock currently trading at an attractive valuation (P/E below 12x), analysts maintain a "recommend" rating. As the new energy heavy-duty truck market stabilizes, Weichai Power is well-positioned for potential upside in its core business, further supporting its strong stock performance.