On the evening of October 29th, Weichai disclosed its third quarter report for 2026. In the first three quarters, the company achieved a revenue of 181.17 billion yuan, a year-on-year increase of 6.2%; The net profit attributable to the parent company was 10.66 billion yuan, a year-on-year increase of 20.1%. In the third quarter, the operating revenue was 58.01 billion yuan, and the net profit attributable to the parent company was 2.96 billion yuan. It is worth noting that the company's non recurring net profit in the third quarter was 3.22 billion yuan, a year-on-year increase of 13.9% and a month on month increase of 2.8%. The business has continued to strengthen and delivered a high-quality third quarter report.

High profitability and solid and reliable core business profits. From the third quarter report disclosed by the company, excluding non economic and other "one-time noise", the core business quality is more solid than the apparent figures. Against the backdrop of the traditional off-season in the heavy truck industry, the continuous increase in the penetration of new energy, and the temporary significant correction of natural gas heavy trucks due to high gas prices, the company's operating performance has reached its best level in single quarter history. Thanks to the increase in the proportion of high-value products such as M-series large bore engines and data center power generation, the gross profit margin in the third quarter was nearly 23%, achieving significant growth on a year-on-year basis. The company's profitability quality is gradually improving, and its business structure is undergoing deep optimization and adjustment.

The growth space is vast, and the strategic business is building a long-term growth curve. Faced with the trend of greenization, intelligence, and computing power in the industry, Weichai Power actively cultivates a new growth curve, creates a product matrix covering large bore diesel engine backup power, gas engine main power, and SOFC medium - and long-term main power, deeply enters the high growth track of data centers, and gradually becomes a new growth engine in the power energy business. The sales of M-series high-end engines with power generation as the core application scenario have exceeded 11000 units, which has exceeded the annual sales scale of last year and increased by more than 40% year-on-year; Among them, the sales volume of data center power generation products exceeded 2700 units, a year-on-year increase of nearly 200%, and the sales volume in the third quarter alone reached about 1300 units. Against the backdrop of sustained growth in data center power infrastructure, electric energy is expected to become the core driving force for Weichai to cross the cycle.

Adhere to steady dividend distribution and continuously deliver high dividend returns. The continuously improving business performance provides solid support for the long-term stable dividend mechanism, breaking the market stereotype that high dividend enterprises have weak growth and limited dividends. Since its listing, Weichai Power has been continuously distributing dividends every year, with a total cumulative cash dividend of 46.4 billion yuan. The company's dividend return continues to rise, with a stable dividend yield of over 4%. In mid-2026, the company distributed approximately 4.5 billion yuan in dividends, breaking the historical record for single dividend payments and increasing the dividend payout ratio to 58%. In addition, the company has established a regular mechanism for mid-term and annual dual dividend distribution, continuously rewarding shareholders with cash dividends.

As a valuable asset that combines high dividends and high growth in A-shares, Weichai relies on its stable business performance to expand its growth space through new energy, power energy and other new tracks, effectively smoothing out industry cycle fluctuations; On the other hand, by normalizing cash dividends to cash out shareholder returns, stable dividend income can be provided. CITIC Securities believes that Weichai currently combines the traditional profit base of its main business, the growth potential of power energy, and high dividend returns, further enhancing its valuation attractiveness. It is expected to usher in a dual drive of high profit certainty and valuation repair.Editor/Yangmeiling