Recently, commercial vehicle parts giant Weichai Power released its performance data for the first half of this year. With the commercial vehicle industry wailing all over the first half of the year, Weichai Power's sub-industry has achieved good sales growth. During the reportin

Recently, the commercial vehicle parts giant Weichai Power released its performance data for the first half of this year. With the commercial vehicle industry wailing all over the first half of the year, Weichai Power's sub-industry has achieved good sales growth. During the reporting period, Weichai Power sold 285,000 engines of various types, 319,000 gearboxes, and 2.272 million axles. Among them, 22,000 engines were exported, an increase of 32.5% year-on-year; 11,000 gearboxes were exported, an increase of 52.9% year-on-year. Commercial vehicles were exported 13,500, an increase of 51.8% year-on-year. So the question is, why can Weichai still gain market recognition when the commercial vehicle industry is under pressure this year?

For Weichai, the weakness of the commercial vehicle market also has a huge impact on it, but Weichai has made great achievements in finding new business growth. In order to explore the high-end agricultural equipment market, Weichai spent 1.584 billion yuan to further increase its equity in Weichai Rewo Heavy Industry to 62%. At this point, Weichai has become the latter's largest shareholder. Lewo is a leader in the agricultural equipment field in my country, with a total assets of 13.6 billion yuan. Since its establishment, it has produced and sold more than 6 million agricultural machinery of various types, and its share in the export market of large and medium-sized tractors has reached 30%.

In Weichai Power's view, as the domestic urbanization process reaches a stage high, the growth of heavy truck demand in the country may slow down in the future, and the agricultural equipment field is an undervalued market. According to the requirements of the "14th Five-Year National Agricultural Mechanization Development Plan" released by the Ministry of Agriculture and Rural Affairs this year, by 2025, the total power of agricultural machinery in the country will be stable at around 1.1 billion kilowatts, and the national comprehensive machinery rate of crop cultivation and harvesting will reach 75%. As a well-deserved leader in the field of agricultural machinery, Weichai Revo will fully benefit from this round of agricultural mechanization process. As the hero behind providing Weichai Revo's powertrain, Weichai Power will also gain business growth in this process.

In addition to the potential growth in the next few years, for Weichai Power, the greater benefit is that Weichai Revo can be directly listed. On August 30 this year, Weichai announced that it would split Lewo and go public on the ChiNext. If the listing is successful, Weichai can obtain a considerable one-time equity income in long-term equity investment. It can be seen that Weichai Power is not only actively looking for new market growth points in the parts field, but is also a good player in capital operations, which has also led to Weichai Power being recognized by investors when the market is sluggish.

Take the Ferreti , which was successfully listed in Weichai this year. On March 31 this year, Ferreti, a luxury yacht manufacturer of Weichai Power Holdings, was successfully listed on the Hong Kong Stock Exchange, with a price of HK$2.288 per share, raising a total of HK$1.912 billion, and a total market value of HK$7.642 billion. Tan Xuguang, chairman of Ferreti, said that Weichai has always been Ferreti's most determined strategic partner, and the two sides will jointly promote China's marine economy development. Although the yacht industry is growing at a high rate, from the other hand, Ferretti's annual profit hovers tens of millions of euros, and its impact on Weichai Power Group's performance is almost negligible. However, through listing, Weichai Power has obtained the value-added of corresponding equity investments.

From this perspective, wechat Power is constantly exploring new incremental markets at the trough of the industry, and on the other hand, it splits its high-quality subsidiaries to list them to obtain the best capital appreciation returns. Through these two methods, Weichai Power can continue to make progress and achieve greater achievements in the bleak industry.