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Weichai Power: AIDC business has been executed smoothly, and the stock price correction has created an excellent entry point (J.P. Morgan)

2026-07-22·ima-daily5min-0722-19-f44b8b1e49

Street Signal | Weichai Power: AIDC business has been executed smoothly, and the stock price correction has created an excellent entry point (J.P. Morgan)

JPMorgan Chase issued a research and analysis report on Weichai Power (000338), maintaining its positive rating rating on A shares and H shares, and setting target prices of 49 yuan and 52 Hong Kong dollars respectively. It believes that the current stock price has fallen by 20%-25% from the previous high, creating an attractive entry point.

The report confirms that the AIDC business has been executed smoothly, the certification of 2.5MW gas engines in the US market is in progress, the parent company's revenue in the first half of the year exceeded 200 billion yuan, and data center product revenue increased by 140% year-on-year.

The report also pointed out that the market's concerns about AIDC overcapacity are excessive and that industry demand growth has long-term support.

The market's cyclical concerns about the energy equipment sector have led to a correction in stock prices, but JPMorgan Chase believes that the structural demand brought by AIDC (AI Data Center) is the long-term main line, and the correction in Weichai Power's stock price is a rare buying opportunity.

One-sentence conclusion: Weichai Power's AIDC business is progressing smoothly, and the stock price correction provides an excellent entry point. J.P. Morgan believes that the market's concerns about overcapacity are excessive and reiterates its positive rating rating. Positive/negative: Positive for Weichai Power (000338.SZ/2338.HK).

The market's concerns about AIDC overcapacity and weak performance in 1H26 have been fully reflected in the 20%-25% stock price correction. However, the long-term growth logic of the company's AIDC business and strong order pipeline have not been fully priced by the market. Catalysts:

1) Certification progress and first shipment of 2.5MW gas engines in the US market;

2) The parent company’s data center product revenue data in the second half of the year;

3) The announcement of the company’s new AIDC order.

Full text

Weichai Power: AIDC business has been executed smoothly, and the stock price correction has created an excellent entry point (J.P. Morgan)

JPMorgan Chase issued a research and analysis report on Weichai Power (000338), maintaining its positive rating rating on A shares and H shares, and setting target prices of 49 yuan and 52 Hong Kong dollars respectively. It believes that the current stock price has fallen by 20%-25% from the previous high, creating an attractive entry point. The report confirms that the AIDC business has been executed smoothly, the certification of 2.5MW gas engines in the US market is in progress, the parent company's revenue in the first half of the year exceeded 200 billion yuan, and data center product revenue increased by 140% year-on-year. The report also pointed out that the market's concerns about AIDC overcapacity are excessive and that industry demand growth has long-term support. The market's cyclical concerns about the energy equipment sector have led to a correction in stock prices, but JPMorgan Chase believes that the structural demand brought by AIDC (AI Data Center) is the long-term main line, and the correction in Weichai Power's stock price is a rare buying opportunity. One-sentence conclusion: Weichai Power's AIDC business is progressing smoothly, and the stock price correction provides an excellent entry point. J.P. Morgan believes that the market's concerns about overcapacity are excessive and reiterates its positive rating rating. Positive/negative: Positive for Weichai Power (000338.SZ/2338.HK). The market's concerns about AIDC overcapacity and weak performance in 1H26 have been fully reflected in the 20%-25% stock price correction. However, the long-term growth logic of the company's AIDC business and strong order pipeline have not been fully priced by the market. Catalysts: 1) Certification progress and first shipment of 2.5MW gas engines in the US market; 2) The parent company’s data center product revenue data in the second half of the year; 3) The announcement of the company’s new AIDC order.

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