On the evening of July 2, Weichai Power announced its semi annual performance forecast for 2023. Benefiting from the favorable domestic economy and strong export market demand, the company expects to achieve a net profit attributable to shareholders of the listed company of 3.587 billion yuan to 4.065 billion yuan in the first half of the year, an increase of 50% to 70% year on year; The net profit attributable to shareholders of the listed company after deducting non recurring gains and losses was 3.3 billion yuan to 3.87 billion yuan, a year-on-year increase of 105% to 140%.

 

When it comes to the next development of the industry, Yin Yanji, an analyst at Huaan Securities, said that this year's heavy truck sales are in a stage of recovery growth, and may enter a period of rapid upward growth in the next few years.

Upward industry prosperity

After experiencing a trough in the past two years, the heavy truck industry achieved recovery in 2023, and the industry's prosperity showed an upward trend in the first half of this year.

According to data from China Automobile Association and First Commercial Vehicle Network, the Chinese heavy truck industry achieved sales of 474000 vehicles in the first half of 2023, a year-on-year increase of 25%. However, the sales of heavy trucks for the entire year of 2022 were only 671900 vehicles. In the past June, the sales of the heavy-duty truck industry increased by 31% year-on-year to around 72000 vehicles, marking the fifth month of year-on-year growth in the heavy-duty truck market since February this year. 

The analysis points out that the main reason for the overall recovery of the industry in the first half of the year is the gradual recovery of the domestic economy and strong export demand.

Yin Yanji stated that this year's infrastructure investment and logistics transportation demand are moderate, and the heavy truck industry is in a stage of recovery growth.

The continuous growth of demand in overseas markets has opened up incremental space for the heavy truck industry. "Since 2021, China's heavy truck export has shown explosive growth." Li Hengguang, an analyst at Northeast Securities, said that this is mainly because domestic automobile production and consumption have recovered better than overseas in the past few years, and the "the Belt and Road" has continued to advance and China's heavy truck product strength has improved.

In the face of overseas market opportunities, Weichai Power made a strong breakthrough in the export market of related products. In the first quarter of this year, the company exported 18000 engines, a year-on-year increase of 59%; 13000 heavy-duty trucks were exported, a year-on-year increase of 164%. The relevant person in charge of the company told Securities Daily that the current export situation continues to improve, which will also drive the company to achieve its annual export target.

Regarding the future development prospects of the heavy-duty truck industry, the latest research report from Southwest Securities believes that the delayed demand for heavy-duty truck replacement in 2022 is gradually releasing, and coupled with the exploration of overseas markets by domestic car companies, recovery will still be the main focus of the heavy-duty truck industry this year. Industry insiders believe that with the arrival of the "peak season" in September and October, the heavy truck industry will see a significant improvement in the second half of the year.

Yin Yanji believes that the process of macroeconomic recovery is accelerating, and investment related engineering construction vehicles and logistics vehicles related to express delivery will continue to grow. At the same time, under the constraint of the goal of "striving to exceed 40% of the total number of new energy and national VI emission standard trucks by 2025", combined with the catalysis of national III and IV elimination policies, the demand for renewal and replacement will strongly support the recovery of the heavy truck market.

Diversified layout promotes growth

Weichai Power achieved substantial growth in performance in the first half of this year, which is inseparable from the development of its diversified new business forms. It is reported that since this year, Weichai Power's new business layout has continued to maintain a strong growth momentum, focusing on strategic development in business areas such as large bore engines, high horsepower engines and exports. Heavy truck engines are gradually transforming into large horsepower and large displacement structures, and the profit contribution of related layout is accelerating.

Among them, as a "ballast stone" in the heavy truck engine sector, on the one hand, driven by favorable factors such as the decrease in natural gas prices in the first half of the year, the sales of natural gas heavy truck engines in Weichai Power's advantageous market increased significantly year-on-year, which had a positive impact on the company's market share of heavy truck engines; On the other hand, the company continues to expand its high-end high-power strategic market, achieving a significant increase in market share.

As a "new highland" for strategic business development, large cylinder bore engines have won the favor of domestic and foreign markets due to their powerful products and excellent economic performance. The continuous increase in production capacity has also continuously boosted market share. The company believes that in the next 3 to 5 years, the company will continue to increase its market expansion efforts, further increase market share, and maintain rapid annual growth.

At the same time, Weichai Power's high-end hydraulics are comprehensively accelerating the localization. In the first quarter of 2023, the sales revenue of this business segment will reach 300 million yuan, up 67% year on year. After entering the second quarter, the development momentum is still strong. The company said that it would continue to give play to the advantages of high-end hydraulic Powertrain, continuously improve the market reputation, support and continue the high-speed growth trend.

In addition, Weichai Power is also fully deployed in the field of new energy, has perfect technical reserves in multiple Technology roadmap such as pure electric, hybrid and fuel cell, and actively promotes the commercial application of new energy products. "This is an important layout for the company to meet the challenge of energy diversification, fully ensuring that the company's Powertrain business always leads the industry." The company's aforementioned person in charge told the Securities Daily reporter.