Changes in Hong Kong stocks | Weichai Power (02338) is now down more than 6% LNG heavy trucks do not meet subsidy requirements. Demand for LNG heavy trucks declined further in September

The Zhitong Finance App learned that Weichai Power (02338) is now down more than 6%. As of press release, it is down 6.26% to HK$11.98, with a turnover of HK$189 million.

According to a report issued by Yamato, the bank said that demand for liquefied natural gas (LNG) heavy trucks declined further in September due to the fact that liquefied natural gas (LNG) heavy trucks did not qualify for trade-in subsidies and the narrowing of the price difference between diesel and liquefied natural gas. Weichai Power's gross margin is expected to be negatively affected by weak LNG demand in the second half of the year.

CMB International, on the other hand, said that based on the latest industry heavy truck (HDT) sales forecast, the 2024-2026 sales forecast for Weichai HDT will be reduced by 7%, 7%, and 2%, respectively. In the short term, the price gap between liquefied natural gas (LNG) and diesel is expected to narrow, which will be detrimental to Weichai's gas engine business. The bank lowered Weichai Power's profit forecast for 2024 to 2026 by only 1% to 3%, mainly due to the relatively stable profit outlook, but the latest forecast shows that profit growth will slow from 51% in the first half of this year to 7% and 2% in the second half of this year and next year.