Weichai Power’s Controlling Shareholder Extends Non-Competition Pledge by Five Years

Weichai Power Co ( (HK:2338) ) has shared an announcement.

Weichai Power announced that its de facto controller, Shandong Heavy Industry Group, will extend by five years its existing non-competition undertaking designed to resolve overlapping heavy-duty vehicle businesses between Weichai Power and CNHTC. Shandong Heavy Industry said it has explored solutions such as asset restructuring and business adjustments, but cited complex cross-provincial state-owned asset supervision, multiple listed entities and immature market and regulatory conditions as reasons it cannot complete the original commitments on schedule; the extended undertaking keeps all other terms unchanged and, according to the company, complies with regulatory guidelines and will not affect Weichai Power’s normal operations or harm the interests of shareholders, including minority investors.

The most recent analyst rating on (HK:2338) stock is a Buy with a HK$21.00 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 that operates in the heavy machinery and commercial vehicle sector through engines, powertrains and related equipment, and has overlapping exposure to the heavy-duty vehicle business via its association with China National Heavy Duty Truck Group Company Limited (CNHTC). The company’s de facto controller is Shandong Heavy Industry Group Co., Ltd., a large state-owned industrial group supervised by provincial authorities.

Average Trading Volume: 17,435,775

Technical Sentiment Signal: Buy

Current Market Cap: HK$171.2B

Learn more about 2338 stock on TipRanks’ Stock Analysis page.