By Jiahui Huang


Weichai Power shares rose after the Chinese diesel-engine maker guided for sharply higher 2023 net profit on increased sales and industry growth.

The stock was recently 3.35% higher at 12.94 Hong Kong dollars (US$1.65) on Wednesday, on track for its largest one-day percentage gain since November.

The Shandong, China-based company said Tuesday that it expects full-year net profit of between 8.58 billion yuan (US$1.20 billion) and CNY9.32 billion, an increase of 75% to 90% from 2022.

It attributed the expected earnings jump to structural growth in the heavy-duty trucking industry and a rise in product sales.

Weichai Power's guidance is slightly ahead of Citi's expectation but in line with the consensus, analyst Beatrice Lam said in a note. The company's fourth-quarter net profit likely rose 31% to 77% from a year earlier, Lam said.

Citi, however, maintained its neutral rating and HK$13.20 target price on the stock. While China's heavy-duty truck industry has started to recover from a downcycle, there is a lack of visibility on policy support, it said.


Write to Jiahui Huang at jiahui.huang@wsj.com


(END) Dow Jones Newswires

01-24-24 0027ET