Weichai Power's third-quarter performance is under pressure, but long-term growth potential is huge

Weichai Power's third-quarter 2024 performance report shows that despite the decline in revenue and profits, its long-term growth potential remains strong. In the quarter, the company's operating income was 49.46 billion yuan, a year-on-year decrease of 8.8% and a month-on-month decrease of 11.8%. The net profit attributable to the parent was 2.50 billion yuan, a year-on-year decrease of 4.0% and a month-on-month decrease of 24.4%. The main reason is that the demand for heavy trucks in the third quarter weakened, resulting in pressure on the company's revenue side on a month-on-month basis. However, the company's large-displacement engine shipments such as large-bore engines are expected to increase month-on-month, and the structural optimization has offset the negative impact of natural gas engines.