Diversified Layout Powers Weichai Heavy Machinery's Marine Engine Business to Steady Growth

Recently, the first 8,000-ton class methanol bunkering chemical tanker in China (Ship ID: IGAN) was successfully launched in Yangzhou, Jiangsu.

(The first 8,000-ton class methanol bunkering chemical tanker in China was successfully launched in Yangzhou, equipped with Weichai Heavy Machinery ship power)

Thanks to continuous product upgrades and strategic implementation in the core marine engine business, Weichai Heavy Machinery's operating results have been steadily realized, with a clear growth logic. In Q1 2026, Weichai Heavy Machinery's performance was outstanding with significant growth. Revenue reached 2.067 billion yuan, up 87% year-on-year; net profit attributable to parents was 550 million yuan, up 76.49% year-on-year. As a core foundational business Weichai Heavy Machinery has cultivated for many years, the marine engine business sector fully grasped the dual dividends of industry cycle upturn and accelerated low-carbon transition. Combined with the continuous improvement of the supply chain layout, growth momentum is continuously released, solidifying the core engine for company revenue expansion and profit improvement.

High-end upgrade of traditional marine engine power, solidifying the basic foundation of the existing market

Currently, the global shipbuilding industry is at a dual upward turning point of new demand expansion and existing stock replacement, with industry sentiment continuing to rise. As of the end of Q1 2026, global new shipbuilding order backlog reached 191 million CGT (Compensated Gross Tonnage), reaching a 17-year high. At the same time, the global fleet has entered a replacement cycle, combined with continuously tightening international maritime emission reduction policies, accelerating the pace of phasing out old high-energy-consuming ships. Industry estimates show that between 2025 and 2030, global annual delivery demand will be approximately 100 million deadweight tons, with a solid industry demand foundation.

While industry demand expands, new energy efficiency and environmental regulations continuously raise the entry threshold for ship power, and the market tilts towards high-efficiency, low-consumption, compliant high-end products. Relying on deep ship power technical accumulation, Weichai Heavy Machinery accelerates the high-end iteration of traditional ship power.

(Weichai Heavy Machinery high-end ship power products)

In the high-end merchant ship auxiliary engine sector, heavy fuel merchant ship auxiliary engines represented by WH20, relying on performance advantages such as reliability, efficiency, environmental protection, and economy, are widely equipped with bulk carriers, asphalt tankers, container ships, and other mainstream vessels, with market recognition continuously solidifying.

At the same time, the company is vigorously expanding into high-end niche markets such as coastal transport vessels, tugs, wind power installation vessels, and ocean-going merchant ships. It optimizes profit structures with high-value-added products and continuously consolidates leading advantages in the existing market.

Positioning at the forefront of low-carbon transition, green power builds incremental advantages

Ship market demand continues to be released, combined with global shipping low-carbon transformation, the industry welcomes new growth opportunities. With the implementation of IMO shipping decarbonization rules, EU shipping carbon trading mechanisms, and green shipping policies of various countries, low-carbon green transformation is the overwhelming trend. Data from the International Chamber of Shipping (ICS) shows that in Q1 2026, the proportion of new orders for ships using low-carbon and zero-carbon fuels such as LNG, methanol, and ammonia has exceeded 40%. The trend of green ship replacement is accelerating comprehensively, and industry incremental space continues to open up.

Weichai Heavy Machinery has forward-looking positioned at the industry transition window, proactively diversified green power technical routes, and built a green ship power system covering alternative fuels, hybrid power, pure electric, etc. It fully matches the iterative demands of industry low-carbon transition. Technical reserves and industrialization implementation progress remain firmly in the industry's first tier.

(Weichai Heavy Machinery bio-fuel ship power)

In the field of green power, the company has successfully laid out multiple technical tracks including natural gas, methanol, biodiesel, and electric. Among them, methanol and B100 biodiesel engine series have obtained authoritative certification from China Classification Society (CCS). They have already completed sea trials on actual ships in the Yangtze River Basin, Greater Bay Area, Singapore, and other places. The pace of commercialization implementation continues to accelerate.

In the LNG power field, in 2021, the company jointly with China COSCO Shipping Group, achieved a 0 to 1 breakthrough in the field of micro-spray ignition single-fuel LNG engines, filling the domestic technical gap. Currently, this series of products has achieved mass supply. Actual ship verification accumulated over 21,000 hours. The market share of the main model WH20LNG exceeds 60%.

In the pure electric sector, the company has completed the product layout of 65kW-500kW ship range extenders, breaking through core ship battery technologies. The 10.6 kWh ship battery has obtained CCS certification, achieved actual ship matching, and successfully entered the electric ship sector, opening long-term incremental growth space for the company.

Looking over a longer time horizon, Weichai Heavy Machinery's revenue, profit, and asset scale have grown steadily over the past five years. Since 2025, growth momentum has significantly increased. Currently, multiple dividends of the shipping industry are concentrating. Relying on the synergistic development of the company's traditional high-end ship power and green new energy power, the business growth path is clear and definite. With a long-term stable operating foundation, combined with industry upturn opportunities, the profitability of Weichai Heavy Machinery's ship sector continues to rise. The medium and long-term development prospects are solid, and investment value continues to highlight.