HK Stock Market Move | Weichai Power (02338) rose more than 5% in the afternoon, benefiting from GEV's previous upward revision of gas turbine production capacity guidance. The industry sentiment is benefiting from AIDC's upward development.

Weichai Power (02338) rose more than 5% in the afternoon, as of the time of writing, up 5.08% to HK$25.6, with a turnover of HK$5.45 billion. On the news front, benefiting from strong order growth, GEV originally planned to achieve an annual production capacity of 20GW of gas turbines by 2026Q3. The company has now advanced this goal to 2026H1 and further increased its expansion plan to 24GW by 2028. In order to support the increase in production capacity, GEV is expected to continue to invest $10 billion in capital expenditures from 2025 to 2028. Soochow believes that due to the highly complex gas turbine supply chain, and its deep sharing of upstream resources with the aviation and defense industries, the overall expansion pace of production capacity is limited, making it difficult to quickly match the explosive growth in orders. In this context, GEV's upward revision of its expansion target further clarifies the sustained upward trend in the gas turbine industry. Soochow stated that under the accelerated construction of AIDCs, the continued widening of the gap between power supply and demand is expected to usher in a new upswing cycle for the gas turbine industry. The construction of AI data centers brings a large demand for electricity, and places high requirements on the reliability and stability of power supply, leaving a big potential for gas turbine market substitution. Changjiang pointed out that the company is actively deploying diesel engines (with a large cylinder diameter) for backup power in data centers and solid oxide fuel cells (SOFC) for primary power. The large cylinder diameter business has entered a rapid growth phase with continuous performance realization; the overseas demand for SOFC is strong, and the company has already reached intention orders. As the project ramps up to mass production in 2027, there is huge potential for future growth.