UBS: Downgrades Weichai Power (02338.HK) to "Neutral", raises target price to HK$18.5

According to the Wisdom Financial APP, UBS released a research report stating that the stock price of Weichai Power (02338.HK) has risen by 50% since the beginning of the year, outperforming the Hang Seng Index and approaching the bank's original target price. The bank believes that the current price already reflects the positive outlook of the explosive demand for data center engines and the improvement in investment sentiment driven by the subsidy for equipment replacement. Due to the continued weakness in the traditional engine business due to the impact of electric trucks, the bank has lowered its profit forecast for 2025 to 2027 by 2 to 5%, and downgraded the rating from "buy" to "neutral", while the target price has been raised from 18.2 HKD to 18.5 HKD.