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.

Thematic (Sector/Industry)

<ul><li>The 35% decline in China’s LNG price (due to abundant supply) along with the 4% increase in diesel price (due to strong crude price) YTD have reduced the gas/diesel price ratio to only 0.56x (0.9x in late Dec 2023).</li><li>The expanding price spread boosted the sales of natural gas HDTs substantially by 2x YoY in Mar, taking the gas HDT ratio to 25% (vs 7% in Jan).</li><li>We expect the current gas/diesel price spread could last longer than that in 2023, given the elevated crude price arising from the geopolitical tension in the Middle East. </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.

The 35% decline in China’s LNG price (due to abundant supply) along with the 4% increase in diesel price (due to strong crude price) YTD have reduced the gas/diesel price ratio to only 0.56x (0.9x in late Dec 2023).The expanding price spread boosted the sales of natural gas HDTs substantially by 2x YoY in Mar, taking the gas HDT ratio to 25% (vs 7% in Jan).We expect the current gas/diesel price spread could last longer than that in 2023, given the elevated crude price arising from the geopolitical tension in the Middle East. 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.

China Heavy Duty Truck - Expanding Gas/Diesel Price Spread to Further Boost Sales of Gas HDTs

Equity Bottom-Up

Weichai Power Co Ltd H / Equity Bottom-Up

<ul><li>During the post-results call yesterday, Weichai expected the industry HDT demand in 2024E will be ~900k units (-2% YoY).</li><li>Of this, China demand is expected to fall by 10% YoY to 600k units while exports are expected to grow 20% YoY to 300k units.</li><li>Weichai expects the LNG price to stay low due to oversupply, which may help boost the demand for gas HDTs. </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.

During the post-results call yesterday, Weichai expected the industry HDT demand in 2024E will be ~900k units (-2% YoY).Of this, China demand is expected to fall by 10% YoY to 600k units while exports are expected to grow 20% YoY to 300k units.Weichai expects the LNG price to stay low due to oversupply, which may help boost the demand for gas HDTs. 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) - Key Takeaways from Post-Results Call

<ul><li>Weichai’s net profit in 2023 surged 84% YoY to RMB9bn, which is in line with the profit range of RMB8.58-9.32bn announced in Jan.</li><li>In 4Q23, net profit grew 58% YoY to RMB2.5bn. It’s worth noting that Weichai has declared a final dividend of RMB0.293/shr.</li><li>This, together with the interim dividend, implies that the payout ratio has reached 50% (up from 45% in 2022). </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’s net profit in 2023 surged 84% YoY to RMB9bn, which is in line with the profit range of RMB8.58-9.32bn announced in Jan.In 4Q23, net profit grew 58% YoY to RMB2.5bn. It’s worth noting that Weichai has declared a final dividend of RMB0.293/shr.This, together with the interim dividend, implies that the payout ratio has reached 50% (up from 45% in 2022). 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) - 4Q23 Net Profit +58% YoY

Weichai Power (000338 CH) - 4Q23 Net Profit +58% YoY; Payout Increased to 50%

<ul><li>In the Central Commission for Financial and Economic Affairs (CCFEA) meeting held on 23 Feb, President Xi proposed an acceleration of a large-scale replacement of production equipment to support economic growth.</li><li>This is the first time that equipment replacement is mentioned as a tool to support the economy.</li><li>We believe this message is a positive signal to the heavy-duty truck (HDT) sector. </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.

In the Central Commission for Financial and Economic Affairs (CCFEA) meeting held on 23 Feb, President Xi proposed an acceleration of a large-scale replacement of production equipment to support economic growth.This is the first time that equipment replacement is mentioned as a tool to support the economy.We believe this message is a positive signal to the heavy-duty truck (HDT) sector. 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 – Equipment Replacement Proposed in Central Government Meeting

China

Weichai Power Co., Ltd. specializes in the research and development, manufacturing and sales of diesel engines. The company's products are applicable to markets such as, heavy-duty vehicles, coaches, construction machines, vessels and power generator.

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Weichai Power Co Ltd H (2338 HK)

China Heavy Duty Truck - Expanding Gas/Diesel Price Spread to Further Boost Sales of Gas HDTs

The expanding price spread boosted the sales of natural gas HDTs substantially by 2x YoY in Mar, taking the gas HDT ratio to 25% (vs 7% in Jan).

CMB International

Weichai Power (2338 HK) - Key Takeaways from Post-Results Call

During the post-results call yesterday, Weichai expected the industry HDT demand in 2024E will be ~900k units (-2% YoY). Of this, China demand is...

CMB International

Weichai Power (2338 HK) - 4Q23 Net Profit +58% YoY

Weichai’s net profit in 2023 surged 84% YoY to RMB9bn, which is in line with the profit range of RMB8.58-9.32bn announced in Jan.

CMB International

Weichai Power (000338 CH) - 4Q23 Net Profit +58% YoY; Payout Increased to 50%

Weichai’s net profit in 2023 surged 84% YoY to RMB9bn, which is in line with the profit range of RMB8.58-9.32bn announced in Jan.

CMB International

Capital Goods – Equipment Replacement Proposed in Central Government Meeting

This is the first time that equipment replacement is mentioned as a tool to support the economy.We believe this message is a positive signal to the...

CMB International

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