As AI permeates thousands of industries globally, electricity consumption by data centers worldwide is growing at an annual rate of 18%, with AI power usage surging by over 30% per year. A continuous, stable, and large-scale power supply capability is now seen as critical infrastructure for AI development.

　　On May 6, WEICHAI Power's A-shares hit the daily trading limit at market open, closing at 34.32 RMB per share, a record high. The company's total market capitalization surpassed the 300 billion RMB mark for the first time. For WEICHAI Power, a traditional leader in power equipment, this milestone is highly symbolic. The market's focus has shifted from its traditional cyclical attributes to its strategic positioning and execution capability in the AI data center power sector.

Sustained and Steady Performance Growth

　　Performance is the foundation of valuation. In the first quarter of 2026, WEICHAI Power achieved operating revenue of 62.563 billion RMB, an 8.87% year-on-year increase. Net profit attributable to shareholders was 3.085 billion RMB, up 13.83% year-on-year, while recurring net profit reached 2.988 billion RMB, a 20.25% year-on-year increase. As revenue grew steadily, recurring profit growth outpaced revenue growth, highlighting an improvement in profitability.

　　Its traditional engine business remains the company's "ballast" for earnings. In sectors like heavy-duty trucks, construction machinery, and agricultural equipment, WEICHAI maintains a leading market share, and its ongoing product portfolio optimization provides stable support for overall profits. Despite ongoing industry fluctuations, its leading position and scale advantages offer substantial resilience.

　　On this solid base, its power generation business is accelerating. In Q1, power generation product sales reached 30,000 units, a 21% year-on-year increase. Among these, large-bore engine sales surpassed 3,000 units, growing over 20% year-on-year. The increasing share of high-value-added products is becoming a significant source of profit structure optimization.

Rapid Growth in Data Center Power Business

　　With the global rise in AI computing power demand, data center construction is accelerating, simultaneously increasing demand for both backup and primary power sources. WEICHAI Power's large-bore engines have entered a stage of large-scale application in this field.

　　Data shows that in 2025, WEICHAI sold 1,400 large-bore engines for data center use, a 259% year-on-year increase. In Q1 2026, sales exceeded 500 units, a year-on-year surge of over 240%, continuing the robust growth trend.

　　Currently, WEICHAI has completed its power range coverage from 1250 kWe to 5000 kWe, with products integrated into the supply chains of numerous computing power operators in North America, Europe, and China. It has evolved from a simple equipment supplier to a provider of comprehensive power solutions. Few companies globally possess full-power-range coverage capabilities, providing WEICHAI with a solid foundation for international competition.

　　Notably, the company is not limiting its technology path to traditional diesel backup power. It is building a diversified technology portfolio with gas engines and solid oxide fuel cells (SOFC) as primary power sources and diesel engines for backup. Its business positioning is also extending from pure equipment supply to integrated power solutions.

New Energy Business Enters Commercialization Phase

　　Beyond its data center segment, WEICHAI Power's new energy powertrain systems are also growing rapidly. In Q1, its new energy powertrain systems generated revenue of 1.69 billion RMB, a year-on-year increase of about 200%. The product portfolio covers multiple technology paths, including pure electric, hybrid, and hydrogen fuel cells, with applications in commercial vehicles, construction machinery, and mining equipment.

　　Against the backdrop of China's "dual carbon" goals, the trend toward electrification and low-carbon operations in commercial vehicles and construction machinery is becoming clearer. Leveraging its existing customer base and accumulated technical expertise, WEICHAI Power is gradually advancing the commercial deployment of these products. The current data indicates that its new energy business has begun to make a tangible contribution to the company's overall performance.

A/H Share Price Inversion Signals Global Re-evaluation

　　This fundamental structural improvement has triggered a resonance between domestic and international capital markets, most directly reflected in the relatively rare "A/H share price inversion."

　　Typically, due to differences in liquidity and investor composition, mainland Chinese companies' H-shares trade at a discount to their A-shares. However, as of the close on May 6, WEICHAI Power's A-share price was 34.32 RMB, while its H-share price was 44.66 HKD. After currency conversion, the H-share traded at a premium of 13.87% to the A-share.

　　This sustained A/H price inversion indicates that international investors have recognized its strategic role in the AI supply chain. Foreign capital is re-evaluating its long-term growth certainty and technological moat through the lens of a technology growth stock.

　　Several global top-tier financial institutions have voiced this view. Goldman Sachs believes that as gas engines and SOFC become more important as primary power sources for data centers, the company's valuation in the global AI data center power supply chain remains attractive. It maintains a "Buy" rating and has raised its 12-month price targets for A-shares and H-shares to 48 RMB and 56 HKD, respectively.

　　JPMorgan Chase noted that improvements in the company's growth structure, profit margins, and recurring income ratio suggest a valuation re-rating. It raised its 12-month price targets for A-shares and H-shares to 49 RMB and 52 HKD, respectively.

　　From a leader in traditional cyclical manufacturing to a "tech growth" stock attracting global capital attention, WEICHAI Power's 300-billion-yuan market cap represents a new starting point. As global computing power infrastructure investment continues, its valuation framework is poised for a more definitive transformation—provided its AI power business performance continues to meet expectations.