External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>What’s new? On 16 Sep, Generac (GNRC US, NR) signed a long-term agreement with Amazon (AMZN US, BUY, covered by our Internet team) to supply backup generators for datacentres.</li><li>The initial deliveries are expected to be US$2.4bn in 2027-28, with a total value of up to US$8bn as Amazon expands its data centres.</li><li>Meanwhile, Generac gave Amazon a warrant to buy up to 1.69mn shares of Generac’s stock at US$200.93/share (14.7% above the closing price on 16 Sep).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

What’s new? On 16 Sep, Generac (GNRC US, NR) signed a long-term agreement with Amazon (AMZN US, BUY, covered by our Internet team) to supply backup generators for datacentres.The initial deliveries are expected to be US$2.4bn in 2027-28, with a total value of up to US$8bn as Amazon expands its data centres.Meanwhile, Generac gave Amazon a warrant to buy up to 1.69mn shares of Generac’s stock at US$200.93/share (14.7% above the closing price on 16 Sep).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Weichai Power (2338 HK/000338 CH) - Generac & Amazon Deal Positive to Weichai

<ul><li>Weichai is the largest shareholder of Ceres Power (CWR LN, NR) with an equity interest of ~17.8%.</li><li>Our meeting with Ceres last week enhanced our confidence in the outlook of Solid Oxide Fuel Cell (SOFC) (for details, please refer to our note “Key takeaways from London visit” published today).</li><li>For Weichai, based on our understanding, the SOFC capacity construction (using Ceres’ technology) is on track. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Weichai is the largest shareholder of Ceres Power (CWR LN, NR) with an equity interest of ~17.8%.Our meeting with Ceres last week enhanced our confidence in the outlook of Solid Oxide Fuel Cell (SOFC) (for details, please refer to our note “Key takeaways from London visit” published today).For Weichai, based on our understanding, the SOFC capacity construction (using Ceres’ technology) is on track. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Weichai Power (2338 HK/000338 CH) - Positive on SOFC after our London visit to Ceres Power

<ul><li>We expect HDT industry demand growth to slow to 3% YoY in 2026E (from 21% in 2025E), due to the high base following the accelerated sales growth since mid-2025.</li><li>That said, for Weichai, we expect the explosive growth of backup power engines for data centres will continue to gain traction (more details in our 2026 sector outlook published today (link)).</li><li>We forecast Weichai’s total engine sales volume (all types) to grow 8%/3% in 2025E/26E along with margin expansion, driven by elevated HDT demand in 2026E and higher contribution from high-margin data centre engines. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We expect HDT industry demand growth to slow to 3% YoY in 2026E (from 21% in 2025E), due to the high base following the accelerated sales growth since mid-2025.That said, for Weichai, we expect the explosive growth of backup power engines for data centres will continue to gain traction (more details in our 2026 sector outlook published today (link)).We forecast Weichai’s total engine sales volume (all types) to grow 8%/3% in 2025E/26E along with margin expansion, driven by elevated HDT demand in 2026E and higher contribution from high-margin data centre engines. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Weichai Power (2338 HK/000338 CH) - Expect HDT Engines Growth to Slow in 2026E...

Thematic (Sector/Industry)

<ul><li>Hong Kong market has been under pressure over the past two weeks on concerns over liquidity.</li><li>In order to have a closer look at the fund flows in our coverage universe, we analysed close to 20,000 data points of shareholdings in CCASS (on T+2 basis) between 9 and 23 Jun for five HK-listed names under our coverage, namely Weichai Power-H (2338 HK, BUY), Zoomlion-H (1157 HK, BUY), SANY International (631 HK, BUY), SANY Heavy-H (6031 HK, BUY) and Sinotruk (3808 HK, BUY).</li><li>Our results show a clear trend: US brokers were the major sellers while the Stock Connect was the main buying force.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Hong Kong market has been under pressure over the past two weeks on concerns over liquidity.In order to have a closer look at the fund flows in our coverage universe, we analysed close to 20,000 data points of shareholdings in CCASS (on T+2 basis) between 9 and 23 Jun for five HK-listed names under our coverage, namely Weichai Power-H (2338 HK, BUY), Zoomlion-H (1157 HK, BUY), SANY International (631 HK, BUY), SANY Heavy-H (6031 HK, BUY) and Sinotruk (3808 HK, BUY).Our results show a clear trend: US brokers were the major sellers while the Stock Connect was the main buying force.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Capital Goods - Who Are Trading the Sector? Implications from CCASS Data (9-23 Jun)

<ul><li>According to the preliminary data released by Cvworld, heavy-duty truck (HDT) wholesale volume (domestic + export) grew 39% YoY to 100k units in Jan.</li><li>The growth was driven by (1) low-base effect due to early CNY last year (started from 29 Jan); (2) a portion of sales in Dec 2025 was recognized in Jan 2026 as truck manufacturers already reached their sales targets before end-2025.</li><li>We maintain our view that HDT demand in 2026E will likely stay high at &gt;1.1m units, supported by the replacement-driven up-cycle (sales between 2017 and 2021 were a record high) and the extension of government subsidies scheme. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

According to the preliminary data released by Cvworld, heavy-duty truck (HDT) wholesale volume (domestic + export) grew 39% YoY to 100k units in Jan.The growth was driven by (1) low-base effect due to early CNY last year (started from 29 Jan); (2) a portion of sales in Dec 2025 was recognized in Jan 2026 as truck manufacturers already reached their sales targets before end-2025.We maintain our view that HDT demand in 2026E will likely stay high at &gt;1.1m units, supported by the replacement-driven up-cycle (sales between 2017 and 2021 were a record high) and the extension of government subsidies scheme. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Capital Goods - HDT Sales +39% YoY in Jan on Low Base

China

Weichai Power is a Chinese industrial technology company specializing in the research, development, and manufacturing of powertrains, vehicles, and key components such as engines, transmissions, and axles. The company also offers intelligent logistics solutions, including forklifts and warehousing services, and is actively developing new energy technologies like hydrogen fuel cells. Weichai Power was founded in 2002 and is headquartered in Weifang, Shandong, China.

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Weichai Power (2338 HK)