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An announcement from Weichai Power Co ( (HK:2338) ) is now available.
Weichai Power Co., Ltd. has approved a change in the allocation of proceeds from its earlier non-public A-share issuance, shifting RMB1 billion away from its Full Series Hydraulic Pressure Powertrain and Large-Scale CVT Powertrain Industrialisation Project. The company will redirect RMB500 million to expand its Large Diameter High-End Engine Development Project and use the remaining RMB500 million to permanently replenish working capital, while keeping the overall investment size of its funded projects unchanged.
The adjustment reflects completion of key construction work and sufficient current capacity in the hydraulic and CVT project amid changing market conditions, prompting a reduction in equipment spending from RMB3 billion to RMB2 billion and lowering the total project investment to RMB2.134 billion. Weichai expects the hydraulic and CVT project to become usable by December 2026 and reach full capacity in 2030, projecting RMB6 billion in revenue and a post-tax internal rate of return of 16.18%, while the increased investment in high-end engine development is aimed at strengthening product competitiveness and improving capital efficiency.
The Large Diameter High-End Engine Development Project will see its total investment rise from RMB1.84784 billion to RMB2.57584 billion, with proceeds applied increasing by RMB500 million and mainly directed to additional equipment. Planned use of proceeds for this project in 2026 and 2027 will also increase significantly, underscoring the company’s strategic shift toward high-end engine technology and its broader electric power energy business focus.
The most recent analyst rating on (HK:2338) stock is a Buy with a HK$32.00 price target. To see the full list of analyst forecasts on Weichai Power Co stock, see the HK:2338 Stock Forecast page.
More about Weichai Power Co
Weichai Power Co., Ltd. is a China-based manufacturer in the powertrain and equipment sector, focusing on engines, transmissions and related systems for industrial and automotive applications. The company targets high-end powertrain solutions, including hydraulic powertrains and large-diameter engines, to support evolving demand in heavy machinery and energy-related markets.
The company leverages capital raised from a prior non-public A-share issuance to fund industrialisation and development projects aimed at enhancing its competitiveness in high-end engine technologies.
Average Trading Volume: 22,104,042
Technical Sentiment Signal: Buy
Current Market Cap: HK$301.1B
For an in-depth examination of 2338 stock, go to TipRanks’ Overview page.