J.P. Morgan: Weichai Power (000338) — Fireside Chat Takeaways on SOFC's Role in Data Center Power
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J.P. Morgan hosted a fireside chat on February 10, 2026, highlighting the rapidly evolving landscape for alternative data center power solutions. The discussion confirmed that no single technology dominates, with solid oxide fuel cells (SOFC) and gas turbines both central to the next-generation power debate. The bank reiterated its bullish stance on alternative power for AI data centers, designating GE Vernova and Bloom Energy as top picks.
Several insights reinforced the bullish thesis on Weichai Power. The validation of SOFC as a critical bridge—or even long-term—solution aligns directly with Weichai's strategic transformation and capacity ramp-up. The emphasis on scale, first-mover advantages, and robust partnerships mirrors Weichai's approach, particularly its collaboration with Ceres and localized manufacturing capabilities. Current supply constraints industry-wide support pricing and margin expansion, benefiting companies investing in capacity and reliability. Furthermore, the growing role of aftermarket and service revenue as a profit driver is highly relevant to Weichai's expanding installed base.
J.P. Morgan maintains Overweight ratings on both Weichai Power A-shares and H-shares, with target prices of RMB 36.00 and HKD 36.00, respectively, dated December 31, 2026. The bank also maintains Overweight ratings on Bloom Energy (target $166) and GE Vernova (target $1,000). Weichai's management indicated willingness to expand SOFC capacity beyond the 2030 target of 1–2 GW if demand remains favorable, demonstrating both flexibility and ambition in capturing the growing SOFC opportunity across Asia.