Weichai Power to Cancel 21.9 Million Restricted Shares After Missing Profit Target

The latest update is out from Weichai Power Co ( (HK:2338) ).

Weichai Power plans to repurchase and cancel 21,924,000 A-share restricted shares that were granted but not unlocked under its Restricted Share Incentive Scheme, after failing to meet the company-level performance targets for the second unlocking period. The buyback, affecting 664 incentive participants, follows audited 2025 results showing revenue slightly above the target but a profit margin below the required 9%, and will be funded from internal resources, signaling strict adherence to performance-linked equity incentives and potential disappointment for staff but limited direct impact on shareholders.

The decision underscores the company’s commitment to aligning stock-based compensation with clearly defined financial benchmarks, as all restricted shares scheduled for unlocking during this period must be repurchased when targets are missed. This move may reinforce discipline around profitability within the organization and indicates that management is willing to enforce incentive plan rules even when top-line goals are met but margin requirements fall short, highlighting ongoing pressure on earnings quality in a competitive industry environment.

The most recent analyst rating on (HK:2338) stock is a Hold with a HK$29.00 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 Chinese joint stock company listed in Hong Kong, operating in the heavy equipment and powertrain industry. The group focuses on the development and manufacture of engines, power systems and related components, serving sectors such as commercial vehicles, construction machinery and industrial equipment in domestic and international markets.

Average Trading Volume: 21,780,922

Technical Sentiment Signal: Strong Buy

Current Market Cap: HK$242.8B

For a thorough assessment of 2338 stock, go to TipRanks’ Stock Analysis page.