Relying on the core advantages of high added value, high visibility, and high barriers of large bore engines, Weichai Power is ushering in a new round of value reshaping. The data shows that the company's large bore business has entered a period of large-scale production, and the degree of performance realization continues to improve. In 2025, the sales volume of M-series large bore products exceeded 10000 units for the first time, a year-on-year increase of 32%, and achieved a year-on-year increase of 65% in revenue; Among them, the sales volume of data center products was about 1400 units, a significant increase of 259% year-on-year. The large bore business is becoming a key force driving the upward shift of the valuation center.

High value-added drives the upgrading of profit structure

In 2025, the company's large bore business will exhibit high-quality growth characteristics with significantly higher revenue growth than sales growth, which intuitively reflects the continuous upgrading of product structure towards high-end and high-power direction, steady increase in average unit price, continuous expansion of the proportion of high value-added products, and fundamental optimization of profit quality.

According to the annual report, Weichai PowerM series large bore engines will sell approximately 11000 units and generate revenue of 5.81 billion yuan in 2025. According to data calculations, the company's M series large bore engines have a unit price of over 500000 yuan, which is about five times higher than the average price of traditional heavy-duty truck engines around 100000 yuan. Moreover, the company's products continue to upgrade and iterate. In 2025, the company will release the world's first 5-megawatt high-speed diesel power generation product, with key indicators such as power generation reaching world-class levels. The market estimates that this product is expected to further open up high-end premium space.

From a profit logic perspective, large bore engines have significant gross profit advantages. According to research by CITIC Securities, the value per unit weight of large displacement engines shows non-linear growth, and the gross profit margin is significantly higher than that of small displacement models. The continuous expansion of high gross profit business scale will optimize the company's profit structure, improve the overall profitability level of the company, and effectively reduce the valuation discount caused by cyclical fluctuations.

The data center market dividend opens up growth space

The global explosion of AI computing power and the acceleration of data center construction have opened up vast growth opportunities for large bore engines, and the industry's high prosperity has medium - to long-term certainty. In this context, Weichai Power has achieved a "simultaneous increase in quantity and price" by leveraging its first mover advantage, activating its growth attributes, accurately positioning itself with technological and product advantages, accelerating the release of business scale, and breaking the long-term monopoly of foreign brands in this field.

Goldman Sachs believes that Weichai Power's existing diesel power generation engines have shown stronger momentum than expected, benefiting from the global AIDC investment boom and the tight supply chain of power generation equipment. It is expected that Weichai Power's value share in the global data center generator engine market will continue to increase.

Diversified application layout expands growth boundaries

Outside of the data center, Weichai Power's large bore engine products have rapidly entered the fields of large-scale construction machinery equipment, ships, and other industries, forming a growth pattern of "multi-point support". Multi scenario layout effectively disperses the volatility risk of a single industry and enhances growth resilience. The company continues to promote the development, testing, and capacity transformation of M-series engine technology, accelerate capacity ramp up and delivery capability improvement, and provide solid support for the rapid expansion of market share.

In the long run, Weichai Power's high value-added large bore business fully benefits from the continuous expansion of AI data center construction, the widening of the boundaries of multiple application scenarios, and the comprehensive formation of the underlying logic for high business growth. The high value-added attributes continue to optimize the company's profit structure, and the dividends of the data center industry further strengthen the attacking momentum of performance growth. The expansion layout in multiple fields also strengthens the certainty of long-term development. The resonance of multiple growth logics helps the company steadily enter a new cycle of high-quality growth.Editor/Cheng Liting