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

Weichai Power Co Ltd H / Equity Bottom-Up

<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...

<ul><li>Weichai’s net profit in 2024 grew 27% YoY to RMB11.4bn, which is in line with our expectation.</li><li>Net profit in 4Q24 grew 19% YoY to RMB3bn, driven by 28%/13% YoY reduction of S&amp;D / R&amp;D expenses despite a flat (YoY) revenue.</li><li>Weichai proposed a final dividend of RMB0.347/shr. </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 2024 grew 27% YoY to RMB11.4bn, which is in line with our expectation.Net profit in 4Q24 grew 19% YoY to RMB3bn, driven by 28%/13% YoY reduction of S&amp;D / R&amp;D expenses despite a flat (YoY) revenue.Weichai proposed a final dividend of RMB0.347/shr. 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) - Strong Engine Margin Expansion in 2024

<ul><li>We expect Weichai Power will gain traction in the near term, as the market has been looking for beneficiaries across the AI-related sectors.</li><li>Based on our estimates, in 2024, Weichai Power delivered 400 units of large-bore highspeed engines specifically for data centres, of which 60% were sold overseas.</li><li>We forecast sales volume in 2025E to surge 1.5x YoY to 1k units. We expect segment revenue in 2025E to reach RMB2bn, based on ASP of RMB2mn. </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 Weichai Power will gain traction in the near term, as the market has been looking for beneficiaries across the AI-related sectors.Based on our estimates, in 2024, Weichai Power delivered 400 units of large-bore highspeed engines specifically for data centres, of which 60% were sold overseas.We forecast sales volume in 2025E to surge 1.5x YoY to 1k units. We expect segment revenue in 2025E to reach RMB2bn, based on ASP of RMB2mn. 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 Strong Volume Growth of Engines for Data Centres

Thematic (Sector/Industry)

<ul><li>We believe mining machinery (in particular large-size excavators &amp; trucks) will become a key growth area for Chinese machinery players in 2026E, given (1) the elevated miners’ capex supported by the strong metal prices, declining ore grades and aging machinery fleets; (2) the rising Chinese investment in overseas mines to drive more Chinese machinery demand.</li><li>We believe Zoomlion, SANY Heavy and SANYI are the key beneficiaries. In China, we expect the overall machinery replacement cycle will continue and expect tenders for the Yarlung Zangbo hydropower project will speed up in 2026E, which will serve as a driver for new demand.</li><li>On the power side, we forecast the global backup power engines for data centres to surge 70% between 2025E and 2030E, offering excellent opportunities for Weichai Power to penetrate.</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 believe mining machinery (in particular large-size excavators &amp; trucks) will become a key growth area for Chinese machinery players in 2026E, given (1) the elevated miners’ capex supported by the strong metal prices, declining ore grades and aging machinery fleets; (2) the rising Chinese investment in overseas mines to drive more Chinese machinery demand.We believe Zoomlion, SANY Heavy and SANYI are the key beneficiaries. In China, we expect the overall machinery replacement cycle will continue and expect tenders for the Yarlung Zangbo hydropower project will speed up in 2026E, which will serve as a driver for new demand.On the power side, we forecast the global backup power engines for data centres to surge 70% between 2025E and 2030E, offering excellent opportunities for Weichai Power to penetrate.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 - Key Themes in 2026: Focus on Mining Equipment...

<ul><li>Four companies under our coverage reported their 3Q25 results after market close yesterday (30 Oct). SANY Heavy delivered better-than-expected earnings (+48% YoY), driven by decent expense control.</li><li>Zoomlion’s profit growth of 36% YoY is also above our expectation, driven by growth acceleration in overseas and recovery in China.</li><li>Weichai Power’s net profit grew 29% YoY, driven by strong HDT/engines sales, which is largely in-line with expectation. </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.

Four companies under our coverage reported their 3Q25 results after market close yesterday (30 Oct). SANY Heavy delivered better-than-expected earnings (+48% YoY), driven by decent expense control.Zoomlion’s profit growth of 36% YoY is also above our expectation, driven by growth acceleration in overseas and recovery in China.Weichai Power’s net profit grew 29% YoY, driven by strong HDT/engines sales, which is largely in-line with expectation. 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 - 3Q25 Results First Take: SANY Heavy & Zoomlion Beat; Weichai In-Line

China

Weichai Power Co., Ltd. specializes in the research and development, manufacturing and sales of vehicles and parts. The Company produces engines, heavy vehicles, light vehicles, construction machinery, hydraulic products, automotive electronics, and related parts. Weichai Power markets its products across worldwide.

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Weichai Power (000338 CH)

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

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...

CMB International

Weichai Power (2338 HK/000338 CH) - Strong Engine Margin Expansion in 2024

Net profit in 4Q24 grew 19% YoY to RMB3bn, driven by 28%/13% YoY reduction of S&D / R&D expenses despite a flat (YoY) revenue.

CMB International

Weichai Power (2338 HK/000338 CH) - Expect Strong Volume Growth of Engines for Data Centres

We expect Weichai Power will gain traction in the near term, as the market has been looking for beneficiaries across the AI-related sectors.

CMB International

Capital Goods - Key Themes in 2026: Focus on Mining Equipment...

On the power side, we forecast the global backup power engines for data centres to surge 70% between 2025E and 2030E, offering excellent...

CMB International

Capital Goods - 3Q25 Results First Take: SANY Heavy & Zoomlion Beat; Weichai In-Line

Four companies under our coverage reported their 3Q25 results after market close yesterday (30 Oct). SANY Heavy delivered better-than-expected...

CMB International

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