Weichai Power issued a profit alert last week. It is expected that net profit in the first half of the year will increase by 50%-100% year-on-year, mainly due to the rapid growth in markets such as heavy trucks and construction machinery markets. The company's mid-2007 adjusted net profit was 975 million yuan and earnings per share was 2.16 yuan.

With the continuous improvement of national highway facilities, the total amount of highways has continued to increase, which has driven a significant increase in the volume of road freight and freight traffic and has driven the development of modern logistics. At the same time, the state has stepped up its policy adjustments on the heavy-duty vehicle market, and the implementation of policies to control overloading and toll-by-weight pricing. The advantages of heavy-duty trucks in terms of transport efficiency have prompted the development of the industry’s product structure to become heavy-duty and high-efficiency. These are heavy-duty trucks. The growth has laid a solid foundation. Last year, China's heavy truck market showed a blowout situation once again. The sales volume of the entire industry reached approximately 487,000 vehicles, an increase of nearly 60% year-on-year.

At present, the company’s major customers include Shaanxi heavy-duty trucks and other companies. In the previous year, the company sold a total of approximately 151,000 heavy-duty trucks, representing a year-on-year increase of approximately 88%. According to the data from the China Association of Automobile Manufacturers, the company’s market share for heavy-duty trucks with a total weight of over 14 tons includes 26.4% in 2006 increased to 32.4%.

According to data from China Construction Machinery Information Network, the company's market share in loaders with a load of 5 tons or more has reached 83%, an increase of nearly 3 percentage points year-on-year, reflecting the company’s leading position in the loader and heavy truck markets.

The Group's significant increase in goodwill due to the merger of the Hunan Torch last year caused the Group to record a major loss. The Group merged the Hunan Torch and expanded from a company specializing in the production of diesel engines to a heavy-duty vehicle company. The engines produced can be used in heavy-duty vehicles and construction machinery. use. In addition to production and sales of heavy-duty cranes, Hunan Torch also produces gearboxes and axles, all of which are in the industry's leading position. Although affected by the new EU Emission Regulation III regulations, the market is concerned that the growth of Weichai's earnings may slow down in the second half of the year, dragging down the recent trend of the share price. However, during the “Eleventh Five-Year Plan”, the central government further increased the related investment to 3.8 trillion Yuan. With the continuous construction of a number of infrastructure projects, coupled with the continuous development of port terminals and increased trade activities, it is expected that this will stimulate the market demand for heavy trucks, which will benefit the company's development prospects.

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