Weichai Power (2338.HK) opened with a gap-up of over 5% in early trading, and its share price quickly surged by more than 13%, reaching HK$20.38—a level not seen since March 2021. On November 5, Ceres Power and Weichai Power inked a solid oxide fuel cell (SOFC) manufacturing license agreement. According to this agreement, Weichai will construct a new factory dedicated to producing cells and stacks. Revenues related to this project are anticipated to be recorded in the fiscal year 2026. A research report from Founder Securities highlighted that Weichai Power's acquisition of the manufacturing license paves the way for a fresh growth avenue in the power and energy sector. This year, the company has exhibited steady growth, with revenue and net profit attributable to shareholders increasing by 5% and 6% year-on-year, respectively, in the first three quarters. This performance has bolstered expectations that full-year profits will surpass RMB 12 billion. At present, the company's price-to-earnings (PE) valuation stands at less than 12 times, suggesting a high margin of safety. With the anticipated rise in the penetration rate of new energy heavy trucks expected early next year, the company's long-held pessimistic outlook for its core business is likely to shift, presenting substantial potential for valuation rebound. Founder Securities maintains a 'Recommend' rating.